Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

GST Liability for services provided before obtaining registration

457 views

Save Share

Join Us Follow Us Add as Source

Dilip

student

130 Points Posted on 15 July 2021

Hello,

A service provider entered into a 3 months contract for the first time for an amount of Rs 2,00,000 /- per month from April - June. Since his contract is only for 3 months he has not obtained registration as aggregate turnover is less than 20,00,000 /-.

However after the contact got ended, a new contract has been entered again for a payment of Rs. 1,80,000 /- per month for 1 year and since the threshold limit is expected to cross 20,00,000 /- the service provider has obtained regsitration and has been paying taxes from July.

Is he required to pay taxes even for April - June as he was not registered during those three months?

Thanks in advance

Replies (5)

Quick Summary

A service provider questions their GST liability for services rendered between April and June, before they obtained their registration. Although their initial contract was short-term and below the threshold, a subsequent year-long contract pushed them over the Rs 20 lakh limit, prompting registration from July. The core issue is whether GST is due on the April-June services when no registration was held at the time.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 15 July 2021

No................ if it is voluntary

Balamurali Unnithan MS

STUDENT

1120 Points Posted on 16 July 2021

Only obtain registration -Within one month after crossing the threshold limit of 20 lakhs -services, 40 lakhs -goods.

Imthias ahamed Kormath

635 Points Posted on 16 July 2021

If u issued an invoice for Rs.200000/-without gst ,no problem arise.But ur rc if effective from April,u will liable to pay gst.Another may issue on that basic .