Applicability of Threshold Exemption

[Kaustubh Karandikar]

XYZ is having turnover in the financial year 18 - 19 above ₹ 20 Lacs and therefore paying GST. In the year 19 -20, he will be continuing to pay GST and if his turnover will be below ₹ 20 Lacs, will he be exempted from paying GST and claim refund of GST already paid in 19 -20 or otherwise how it works?

AI Summary

Clarification on GST Threshold Exemption: Businesses Registered for GST Must Pay Tax Even if Turnover Falls Below 20 Lakhs The discussion revolves around the applicability of the threshold exemption under the Goods and Services Tax (GST) regime. A participant inquires whether a business with a turnover exceeding 20 lakhs in one financial year but falling below this threshold in the subsequent year can stop paying GST and claim a refund for the GST already paid. Responses clarify that the threshold is relevant for registration, not for tax payment. Once registered, GST must be paid regardless of turnover falling below 20 lakhs in subsequent years. There is no provision for canceling registration due to reduced turnover, and the law lacks clarity on the exemption's applicability, leading to confusion among practitioners.