SCN U.S 122

[sudhir sharma]

I AM RUNNING A COMPUTER CENTER. I AM NOT REGISTERED UNDER GST. YESTERDAY GOT NOTICE U/S 122 FOR NOT REGISTERING MYSELF UNDER GST. MY ANNUAL TURNOVER IS LESS THAN 20 LAKH. SO GST IS NOT APPLICABLE ON ME. PLEASE SUGGEST HOW TO REPLY THIS NOTICE.

[Alkesh Jani]

Sir, First of all check ITR filed by you. As the data received by the department from 3rd party such as Income-tax department etc. Also, check you bank statement. If the answer is positive than you can file your reply giving the above mentioned evidence.

Thanks

[Rajagopalan Ranganathan]

Sir,

Section 122 (1) (ix) of CGST Act, 2017 stipulates that " Where a taxable person who is liable to be registered under this Act but fails to obtain registrationhe shall be liable to pay a penalty of ten thousand rupees."

In your case you have stated that your turnover is less than 20 lakhs. You produce the evidences to show that your turnover is less than 20 lakhs during previous financial year or not likely to exceed the limit of 20 lakhs during the current financial year and tell the department you are not liable to register since Section 22 91) of CGST Act, 2017 stipulates that " Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:"

In view of the above you may plead that you are liable to be registered under GST Act and hence you have not obtained registration.

[Ganeshan Kalyani]

As GSTN is allotted PAN based the department is able to get turnover/income details from other departments. There was a point in ITR on GST. On the basis on the information GST department asks the person to register. You will have to prove that your turnover is within the threshold limit of registration.

[KASTURI SETHI]

Dear Querist,

Are you not linked to Information Technology service or (OIDAR) ? I agree with both experts.

[DR.MARIAPPAN GOVINDARAJAN]

If your turnover is less than ₹ 20 lakhs then you may give reply to the authorities with evidence. Before that you may check your income tax return in this regard.

[Ganeshan Kalyani]

I concur with Sri Kasturi Sir,'s concern.

AI Summary

Failure to register under GST may trigger penalty; respond with ITR and bank evidence to show turnover below threshold. A taxable person received a GST notice for failing to obtain registration; the department likely used PAN linked third party data (ITR and bank records) via GSTN. The advised response is to verify Income Tax Returns and bank statements, compile documentary evidence showing aggregate turnover is below the registration threshold, and submit that evidence to demonstrate non liability to register. Also consider whether the supplies fall under IT/OIDAR classification which may affect registration obligations.