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GST Applicability

375 views 7 replies
One asseessee doing

business - TO less than 40Lakhs and also
Service - TO less Than 20 lakhs but total TO exceeds 40 lakhs all are taxable item

for this client we GST is applicable based on Turnover...
Replies (7)

Yes, applicable.... as aggregate turnover already exceeded 20 lakhs.

now the limit for good is 40 lakhs as I am correct..

That is only if you have good supply, without any service supply.

A business whose aggregate turnover in a financial year exceeds Rs 20 lakhs has to mandatorily register under GST. This limit is set at Rs 10 lakhs for North Eastern and hilly states flagged as special category states. Also, the definition of taxable turnover has been changed to aggregate turnover.

Going by the definition of aggregate turnover, Mr. A is required to register under GST because his aggregate turnover exceeds the threshold limit of Rs. 20 lakh.

Further, Mr. A does not have the option to register as a composition dealer because this aggregate turnover exceeds the threshold limit of Rs 1 crore (Rs 75 lakhs for special category states).

 

thanks ji...
The client has to apply for GST Registration since his Aggregate Turnover exceeds the threshold limit of Rs. 20,00,000.

Rs. 40 lakhs threshold turnover limit is applicable only for those suppliers who are dealing in "EXCLUSIVE SUPPLY OF GOODS".

But in your case, the client is a Mixed Supplier ( dealing both in supply of goods and supply of services ).

Hence the client have to apply for GST Registration u/s 22 of the CGST Act 2017.

Warm Regards.
Require to take regn. Gst would be appicable.


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