07 October 2017
sir main ek authrizsed mobile service center chalata hoo maine gst no le liya hai. company under warrunty sets repair karne ke awaj main claim deti hai jo ki 15000 se 20000 monthly ke bich main aata hai kya muche tax dena padega aur kitna dena padega agar main tax ki limit main nahi aata hoo to kya main gst no surrender kar sakta hoo
08 October 2017
You have to pay GST on claim received by you.
You can cancel your registration if your outward supply is less than Rs.20 lakh in a year ......
26 July 2024
As an authorized mobile service center under GST, you need to understand your tax obligations, including whether you need to charge GST on services and how to handle your GST registration if your turnover is below the exemption threshold. Here's a detailed explanation:
### **1. GST on Services Provided by Authorized Mobile Service Centers**
**a. **GST Rate on Repair Services:**
- **Applicable GST Rate:** - The GST rate on repair and maintenance services for mobile phones is **18%** (9% CGST + 9% SGST for intra-state services or 18% IGST for inter-state services). This applies regardless of whether the repair is under warranty or not.
- **Service Classification:** - Since you provide repair services, including under warranty, these services are subject to GST at the standard rate of 18%.
**b. **Charging GST:**
- **Invoice Issuance:** - You must issue a GST invoice for the repair services rendered. The invoice should mention the GST charged, which is 18% on the service value.
- **Input Tax Credit (ITC):** - You can claim Input Tax Credit (ITC) on GST paid on inputs and input services used in the provision of these repair services.
### **2. GST Registration and Compliance**
**a. **Threshold Limit for GST Registration:**
- **Mandatory Registration:** - GST registration is mandatory if your aggregate turnover exceeds ₹20 lakhs (₹10 lakhs for special category states) in a financial year. Since your monthly claim amounts to ₹15,000 to ₹20,000, your annual turnover seems to be below this threshold.
- **Voluntary Registration:** - If you voluntarily opted for GST registration or if it is mandated by your company or service provider, you need to comply with GST rules even if your turnover is below the threshold.
**b. **Surrendering GST Registration:**
- **Surrendering Registration:** - If your aggregate turnover is consistently below the threshold limit and you are not required to be registered under GST, you can apply for the surrender of GST registration. However, ensure that you have complied with all the GST requirements up to the date of surrender.
- **Application for Surrender:** - You can apply for the cancellation of GST registration through the GST portal by filing an application for surrender of registration. Ensure that all pending returns are filed, and any GST dues are settled before applying for cancellation.
### **3. Practical Steps for GST Compliance**
**a. **Filing GST Returns:**
- **Regular Returns:** - File GST returns regularly as per the due dates. This includes GSTR-1 for outward supplies and GSTR-3B for summarizing your GST liabilities and ITC claims.
**b. **Maintaining Records:**
- **Invoice and Records:** - Maintain proper records of all invoices issued and received, including those for repair services under warranty.
**c. **Claiming ITC:**
- **ITC Claim:** - Ensure you claim ITC on eligible inputs and input services. Maintain documentation for all such claims.
### **Summary**
- **GST Rate:** Repair services are subject to 18% GST. - **Invoice Requirement:** Issue GST-compliant invoices and charge 18% GST on repair services. - **Registration Requirement:** If your turnover is below ₹20 lakhs, you may consider surrendering GST registration if it's not required. - **Surrender Process:** Apply for cancellation of GST registration through the GST portal if you wish to opt-out due to turnover below the threshold.
For precise guidance, especially on the surrender process, consult with a GST consultant or tax advisor to ensure compliance with all GST regulations and proper handling of your GST registration.
CAclubindia
