Date of commencement of business in gst form

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2018 Sir/Mam,
If a person has been doing from 2013 and there was no liability to register under any previous tax regime. But now the person wants to get registeration under gst on voluntary basis.
Can he enter the date in 'date of commencement of business' in gst registration form as 1.4.2018 as the business in the past period was minimal?

Expert : Anonymous

Expert : Anonymous (Expert)

19 April 2018 You can mention the date of commencement as 01.04.2018

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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20 July 2024 Yes, the person can enter 01.04.2018 as the "Date of Commencement of Business" in the GST registration form, even if they have been operating since 2013 with minimal business activity and no liability to register under any previous tax regime.

Here’s why this is acceptable:

1. **Voluntary Registration**: Under GST, registration is mandatory if the aggregate turnover exceeds the threshold limit (currently ₹20 lakhs for most states, ₹10 lakhs for special category states). However, registration can also be done voluntarily, regardless of turnover, if the person wishes to avail input tax credit or expand their business.

2. **Date of Commencement of Business**: This date refers to the date from which the business activity is considered to have started under GST. Since the person is choosing to register voluntarily now, they can specify 01.04.2018 as the date of commencement of business. This date signifies the starting point for GST compliance, even if the business has been operational since 2013 with minimal activity.

3. **Minimal Business Activity**: The fact that the business had minimal activity in the past does not affect the choice of commencement date for GST registration. As long as the person intends to start complying with GST regulations from 01.04.2018 onwards, they can select this date in the registration form.

Therefore, entering 01.04.2018 as the date of commencement of business in the GST registration form is appropriate and aligns with the person’s decision to voluntarily register under GST from that date onwards. It ensures compliance with GST requirements without complicating the historical aspects of minimal business activity before GST implementation.

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