REGARDING GST LIABILITY/....

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Suresh S. Tejwani online

Suresh S. Tejwani online

(Querist)
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23 June 2026 We are providing labour contract services to a Trust/Foundation, and TDS is being deducted under Section 194C of the Income Tax Act. Our service income has exceeded ₹20 lakh, but we have not obtained GST registration.

In this situation:

Was GST registration mandatory for us?
What are the consequences of not registering under GST after crossing the prescribed threshold limit?
Does the fact that the services were provided to a Trust/Foundation have any impact on GST applicability or registration requirements?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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23 June 2026 Registration Requirement: Yes, registration is mandatory because your turnover crossed the ₹20 Lakh threshold.

Consequences: You face a minimum penalty of ₹10,000 (or the tax amount, whichever is higher), mandatory payment of back-dated GST on receipts past the threshold, and 18% annual interest on delayed payments.

Trust Exemption: No, providing services to a Trust does not exempt you. While a Trust's outward charitable actions may be exempt, the commercial inward services they procure (like your labor contract) are fully taxable at 18% GST.

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