Do we need to register for gst and which state to register?

Registration 228 views 4 replies

abhishek

partner

40 Points Joined January 2016

We've just started a partnership firm providing media services. We'll be signing our firt contract on monay (12th June 2017) for production of a corporate film. We are not charging any service tax as it is our first project and is for Rs 2 lakh.

Our firm's address is our home address, which is in Gurgaon. The company which has hired us for is based in Mumbai.

So will that be considered inter-state sale of service? Are we still exempt from GST till 20 lakh turnover or do we have to register?

Also how is the state decided? If we do some project for a company with headquarter in Mumbai but shoot at their factory in Karnataka but do all the post-production and editing in Gurgaon (Haryana), which state would the service provided be considered?

And what would be the date for the service? As the contract will be signed in June and work started in June. But the final delivery will take place in July or August.

Please help as it is very confusing and we are just starting a business and are really smalll scale.

Replies (4)

Preeti (Team_GSTSoln)

Team GST Experts

1926 Points Joined April 2011

dear abhishek

1. if u r providing inter state services, so u have to get register underr gst without any limit

2. if the shooting film is related to any event of co. in mumbai or any other place, then u hav to bill to mumbai no matter how u complete ur work

3 u have to charge IGST on ur service

4.for date u have considered payment & delivery basis both simultaneously.

abhishek

partner

40 Points Joined January 2016

Thanks for your reply mam. So we have to charge GST from the 1st rupee if it is interstate?

We haven't registered for GST yet. We will be signing the contract on monday. That doesn't include the GST. So can we amend the contract to charge GST before we register for that?

We'll receive 50% advance in June. So would that also come under GST? The rest will be paid on delivery, which will be somewhere in June.

Thanks!

Preeti (Team_GSTSoln)

Team GST Experts

1926 Points Joined April 2011

no on 50% advance recd in june u need not to charge anything. and surely u should get your contract amended properly & carefully

sanjay singhal

987 Points Joined June 2007

1. If location of supplier of services and place of supply is different state , it is a inter state supply. You have to get registration irrespective of limit and pay IGST.

2. GST is payable at the time of supply.

3. Supplier of service has to issue invoice before or within 30days after provision of services.