Threshold limit
This query is : Resolved
Navin Chitla
(Querist)
17 July 2017
What if any person opt for gst whose turnover is less than 20lakhs
Is there any drawbacks or any benefits with him
Please answer
Is there any drawbacks or any benefits with him
Please answer
CA Pradeep Sharma
(Expert)
17 July 2017
Benefit ..............can take ITC of purchase made by you which can reduce your cost
Drawback..............increase compliance cost.
cannot make purchase from unregistered dealer except 5000 in one day
Drawback..............increase compliance cost.
cannot make purchase from unregistered dealer except 5000 in one day
Navin Chitla
(Querist)
17 July 2017
thanku CA Pradeep Sharma sir
any more possibilities please
02 August 2025
I'm glad you found the breakdown useful! Here's a quick **addition based on your interest**—if you're still considering voluntary GST registration, here are a few **pro tips** to help you decide smartly:
---
### 🔧 **Pro Tips Before Opting for Voluntary GST Registration:**
1. **Evaluate Your Buyer Profile:**
* ✅ If your buyers are **registered under GST**, they can claim ITC—so charging GST is fine.
* ❌ If most buyers are **end consumers**, charging GST may make your offering look more expensive.
2. **Look at Your Input Costs:**
* Do you pay GST on purchases like raw materials, packaging, freight, professional fees?
* If **yes**, voluntary registration helps you **recover that cost via ITC**.
3. **Future-Proofing:**
* If you **expect growth** or are bidding for **government contracts, corporate tenders, or online marketplaces**, GST registration is almost always mandatory.
4. **Return Filing Tip:**
* You can opt for **Quarterly Return Monthly Payment (QRMP)** scheme if turnover is under ₹5 Cr. This reduces filing burden.
5. **Avoid Composition Scheme If You're Selling to Businesses:**
* Because you can’t claim ITC or issue a GST invoice under composition—bad for B2B setups.
---
If you want, just tell me:
* What kind of business you run
* Your approximate turnover
* Who your customers are (businesses or individuals)
---
### 🔧 **Pro Tips Before Opting for Voluntary GST Registration:**
1. **Evaluate Your Buyer Profile:**
* ✅ If your buyers are **registered under GST**, they can claim ITC—so charging GST is fine.
* ❌ If most buyers are **end consumers**, charging GST may make your offering look more expensive.
2. **Look at Your Input Costs:**
* Do you pay GST on purchases like raw materials, packaging, freight, professional fees?
* If **yes**, voluntary registration helps you **recover that cost via ITC**.
3. **Future-Proofing:**
* If you **expect growth** or are bidding for **government contracts, corporate tenders, or online marketplaces**, GST registration is almost always mandatory.
4. **Return Filing Tip:**
* You can opt for **Quarterly Return Monthly Payment (QRMP)** scheme if turnover is under ₹5 Cr. This reduces filing burden.
5. **Avoid Composition Scheme If You're Selling to Businesses:**
* Because you can’t claim ITC or issue a GST invoice under composition—bad for B2B setups.
---
If you want, just tell me:
* What kind of business you run
* Your approximate turnover
* Who your customers are (businesses or individuals)
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