Exempted income -GST Payable suomoto -

[SIVARAMA KUMAR]

Dear experts,

Is there any provision under the GST act which prohibits a registered dealer who has not opted for composition scheme, to Pay Gst on his exempted income (without collecting it from consumers ) out of his pocket in cash ( No ITC would be availed or adjusted)

[Ganeshan Kalyani]

GST is applicable on the taxable outward supply. It is not on income. It is a tax on the value of supply. The registered person has to charge GST by showing the tax on the face of the invoice. There is no tax on the exempted supply.

[KASTURI SETHI]

GST or any tax cannot be deposited on one's own volition. I agree with the views of Sh.Ganeshan Kalyani Ji.

Non-provision of such prohibition does not imply that tax can be deposited on exempted supply.

AI Summary

GST on exempt supplies cannot be voluntarily paid; tax applies only when charged and invoiced on taxable supplies.
GST is a tax on the value of taxable outward supply and applies only when a registered person charges tax on the invoice; exempt supplies are not subject to GST, and a supplier cannot lawfully convert an exempt supply into a taxable one by voluntarily depositing GST outside the invoicing and accounting regime.