It doubt returns filed compulsory

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This query is : Resolved

Kollipara Sundaraiah (Querist)

19 January 2022 Sir,
A gst registered dealer services provided dth recharge service (tv channels) e-load to retailers and e-load to customers rs:85lacs in f.y.20-21.
Question:
1.Dealer f.y.20-21 it returns filed compulsory

2.dealer rs:85 lacs service or trading turnover treatment in it act.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

09 July 2024 Based on the information provided:

### 1. GST Return Filing Requirements:

As a GST registered dealer providing services (DTH recharge service and e-load distribution), filing GST returns for the financial year 2020-21 is mandatory if the dealer's aggregate turnover exceeds the threshold limit for GST registration. As per current GST regulations, the threshold limit for GST registration is:

- **For normal states:** Rs. 40 lakhs (Rs. 20 lakhs for special category states)
- **For service providers:** Rs. 20 lakhs

Given that the dealer's turnover is Rs. 85 lakhs, it exceeds the threshold limit for GST registration. Therefore, the dealer is required to file GST returns for the financial year 2020-21. Failure to file GST returns can lead to penalties and compliance issues under GST law.

### 2. Treatment of Turnover under Income Tax Act:

Regarding the treatment of turnover under the Income Tax Act (ITA), it depends on the nature of the income earned by the dealer:

- **Service Income:** If the dealer's primary income is from providing services (such as DTH recharge services and e-load distribution), this income would generally be treated as service income under the ITA. The dealer would need to report this income under the appropriate head (likely under 'Income from Business or Profession' if registered as a business entity) while filing their income tax return (ITR).

- **Trading Turnover:** If the dealer is involved in trading activities (buying and selling of goods), then the turnover related to trading activities would be treated as trading turnover. However, based on the information provided (DTH recharge service and e-load distribution), it seems more likely that the income is from providing services rather than trading.

### Conclusion:

1. **GST Return Filing:** Yes, the dealer must file GST returns for the financial year 2020-21 since the turnover exceeds the threshold limit for GST registration.

2. **Treatment under ITA:** The income from providing DTH recharge services and e-load distribution would generally be treated as service income under the Income Tax Act. The dealer should report this income under the appropriate head while filing their income tax return.

It's recommended for the dealer to consult with a tax professional or chartered accountant to ensure compliance with both GST and Income Tax regulations based on their specific business activities and turnover.

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