Obtaining GST Registration Voluntarily

[Kaustubh Karandikar]

XYZ is a proprietor of an ENT Hospital. The income generated by the hospital along with the proprietor’s other income such as earning through Residential premises given on rent, capital gains, bank interest, FD interest, interest on loan given to a company, interest on PPF and dividend etc. 1) Can XYZ obtain GST Registration voluntarily, despite no statutory obligation? If yes, 2) will XYZ able to take credit of inputs / input services and later claim refund as there are no taxable outward supplies?

[KASTURI SETHI]

Dear Sir, There is no restriction on voluntary registration under GST but GST cannot be collected from the buyer/service receiver on his own volition. Collecting any tax without any authority of law is illegal and unconstitutional. That person may deposit such collected tax with Govt.but ITC cannot be taken. No. question of refund if tax collected illegally and deposited with Govt.There are judgements on this issue.

[DR.MARIAPPAN GOVINDARAJAN]

One can register voluntarily if his aggregate turnover is less than ₹ 20 Lakhs. If Tax is not collected Nil return is to be filed. If exempted supply is provided no input tax can be taken or refund cannot be claimed,

[YAGAY andSUN]

We duly endorse the views of our experts.

[DR.MARIAPPAN GOVINDARAJAN]

Thanks Mr. Yagay

AI Summary

Voluntary GST registration allowed but cannot collect tax without legal authority; input tax credit and refunds limited for exempt supplies. Voluntary GST registration is permitted but does not authorize collection of tax without legal obligation; unlawful collection cannot support input tax credit or refunds. Registrants with no taxable outward supplies should file nil returns, and no input tax credit or refund is available for exempt supplies or for tax collected illegally and deposited with the government.