REGARDING GST LIABILITY/....
This query is : Resolved
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?
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?
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.
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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