I am a trader in automobile spare parts with less than Rs.20 Lakhs per year turnover. However, I have registered with GST because my supplier and my customers (who are retailers) ask for it. Now I am not sure if I have a tax liability to pay and charge on my invoice. So far I am sending inovices without tax but with my GSTIN number.
Can you please advice? If I need not charge tax, can I recover the tax I paid to my supplier?
Regards
S Jayakumar
Now that you have registered under GST you are a registered taxable person as per section 2 of the CGST Act. Hence you are entitled to charge GST at the applicable rates on your invoices relating to outward supply of goods and servcies to your customers. You can also take ITC on the eligble inputs and capital goods as per the provisions contined in section 16 and 17 of the CGST Act 201t. You can use the input credit so availed in the payment of your outward supply liability of tax
In terms of Sec. 25(3) a person, though not liable to be registered under Sec. 22, may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person.
Hence, you are liable to charge and collect GST.
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