Mr X hire vehicle from individuals and provide these vehicle for transportation of Rice. bill for transportation issued to Mr X by Rice mill owner and Mr X make payment to individuals from whom he hire vehicles. and in all these services bill value is above 20 lacs. and the profit to Mr X is approx 2%. whether mr X is liable to get gst registration as bill value is above 20 lacs.
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Quick Summary
This discussion clarifies whether GST registration is mandatory for a business owner, Mr X, who hires vehicles from individuals for rice transportation. Despite a low profit margin of approximately 2%, the total bill value for these services exceeds 20 lakhs. The consensus is that GST registration is indeed compulsory in this scenario due to the turnover exceeding the prescribed limit for service supply.