Threshold Limit

[Kaustubh Karandikar]

An HUF was registered for GST in FY2018-19. Its gross GST turnover (office rent, car hire charges) was 15.50 lakhs before it opted for registration. After registration, there was no further income. So, no GST was charged/paid. It filed NIL returns. In FY2019-20, it will be required to charge GST on the entire turnover? I.e. even before it reaches 20 lakhs? Or charge GST only after it crosses 20 lakhs?

AI Summary

Voluntarily Registered HUF Must Charge GST from First Rupee, No Threshold Exemption, Unless Registration Is Canceled An HUF registered for GST in FY2018-19 with a gross turnover of 15.50 lakhs and filed NIL returns as there was no further income. The query is whether GST should be charged on the entire turnover in FY2019-20 or only after it exceeds 20 lakhs. Responses indicate that once voluntarily registered, GST must be charged on all turnover from the first rupee, with no threshold exemption, unless the registration is canceled due to turnover below 20 lakhs. The GST Act provisions apply equally to voluntary and compulsory registrations.