Turnover Below 20 Lakh And Registered Need To Charge Tax On Invoice?

watch_later 3 years, 9 months ago

Whether a person having turnover below 20 lakh should charge tax in invoice? As the limit for registration is 20 lakhs, whether exemption like service tax is available?

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1 Answer

GST Payer watch_later 3 years, 9 months ago

The limit of 20 lakhs is for registration and not for liability to pay tax. Liability to pay tax arises when you are liable to registration and supplying taxable goods or services or both.

Once you are registered and supplying taxable goods or services or both, you have to charge tax in invoice regardless of your turnover.

If your turnover is below 20 lakhs you are exempted from registration but as soon as you take the registration you have to charge tax in invoice.

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    Suppose i have turnover say 15 lakhs as on 31st December 2017. I got registered (New) from 1st January 2018. As per your reply i have to collect GST on every supply irrespective of turnover (as exemption is only for registration). Now my query is whether i have to pay GST out of my pocket for the first 15 lakhs (supplies made before registration) as i would have not collected GST on such supply. - Charan Raj
    You do not have to pay on 15 lakhs. - GST Payer
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