Reverse charge

[Guest]

Can a GST registered service provider, whose annual TO is less than ₹ 20.00 lac, raise an invoice for services provided to a GST registered client without levying GST in the invoice? Will RCM be applicable for such invoice and the service provide file GSTR1 accordingly?

Thanks.

S. M. Nadkarni

AI Summary

GST Registered Providers Must Charge GST Despite Turnover; Reverse Charge Mechanism Applies Only to Specific Taxable Services A GST registered service provider with an annual turnover below 20 lakh inquired about invoicing without GST and the applicability of Reverse Charge Mechanism (RCM). Respondents clarified that once registered, the provider must charge GST, regardless of turnover, as voluntary registration negates the exemption threshold. RCM applies only if services are taxable under it, otherwise, GST must be included in invoices. The discussion highlighted that unregistered entities below the turnover threshold are not required to charge GST or file returns, but voluntary registration mandates compliance with GST laws.