GST ON TURNOVER BEFORE THRESHOLD LIMIT

[jwala narasimheswar mangipudi]

My client applied for voluntary registration effective from, say, 15th May, 2022. Registration was granted and GSTIN receved effective from 1st August, 2022. I have not collected GST till 1st August, 2022. W.R T my turnover upto 1st August, 2022 shall I pay GST without having collected any tax and file August, return including prior turnover. Or can I collect and pay GST from 1st August, and forget prior non-taxed turnover.

AI Summary

GST Liability Starts from Registration Date Unless Threshold Exceeded: Pay GST on Prior Turnover with ITC Option A client who applied for voluntary GST registration effective May 15, 2022, received their GSTIN on August 1, 2022. They inquired whether they need to pay GST on turnover before August 1, without having collected it. Responses clarified that GST liability starts from the registration date, August 1, unless turnover exceeds the compulsory registration threshold. The client can pay GST on prior turnover and claim Input Tax Credit (ITC) on inputs and capital goods, provided ITC is not time-barred. Sections 18 and 25 of the CGST Act were referenced to support these points.