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?

[CAAastha jain]

GST need to be charged on entire turnover after taking voluntary registration under GST.

[KASTURI SETHI]

Dear Sir,

In view of turnover being below ₹ 20 lakhs in the year 2018-19, you can get registration cancellation. If you continue registration, you will have to pay GST from Re one from 1.4.19 onwards. No thresold exemption will be available.

[SHARAD ANADA]

Refer Sec 2(107) and Sec 9(1) of CGST Act 2017.

2 (107) “taxable person” means a person who is registered or liable to be registered under section 22 or section 24;

9. (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person.

[KASTURI SETHI]

Dear Querist,

Yes. Your client is covered by the above definitions as opined by Sh.Sharad Anada Ji.

[CASusheel Gupta]

As per section 25(3) - A person, though not liable to be registered under section 22 or section 24 may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered person, shall apply to such person.

So once registered, no distinction between voluntary or compulsory

Need to pay tax from ₹ 1/-

Thanks and Regards

CA Susheel Gupta

9811004443

[Spudarjunan S]

Dear Sir,

The threshold limit of ₹ 20 lakhs would be available only once for the purpose of registration. Once you are registered you need to pay GST on post registration supplies from the scratch subject to exemption provided for supply of goods/services.

[DR.MARIAPPAN GOVINDARAJAN]

Once your registered under GST you are liable to levy GST and pay to the credit of the Central Government. You have to file NIL return when there is no tax levied and paid.

AI Summary

Voluntary registration makes an entity a taxable person required to charge GST on post registration supplies, without threshold exemption. Voluntary registration converts the registrant into a taxable person and all provisions applicable to registered persons apply from the date of registration; supplies made after registration must attract and be accounted for GST from the first rupee, with no post-registration threshold exemption. If turnover before registration was below the threshold, the registrant may seek cancellation, otherwise they must file returns and account for tax on post-registration supplies, filing NIL returns where appropriate.