18 July 2017
Hi, One of our client Turnover for the Previous year 2016-17 is Rs.19,34,000 and the Turnover for April-June (2017-18) is Rs. 29 lakhs. Now, whether our client is liable to register under GST? has been automatically migrated to GST under Service Tax-what is the option now? Should we cancel the Provisional Registration under GST?
19 July 2017
As per Section 22(1) "Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in 'a financial year' exceeds twenty lakh rupees" Please note that the section talks about 'a financial year' and not about 'previous financial year' though since we are not cannot say anything about the turnover of current financial year we are presuming it to be previous financial year. However, in your case where turnover of previous financial years was less than 20 lakh but it is more than 20 lakh in first three months of current financial year you must take registration under GST and avoid litigation.
CAclubindia
