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GST ON ROYALTY INCOME

22 April 2024

If the person receives the Royalty income before the GST registration and then he registered. Can the person be liable to raise the GST tax invoice of that income and the payer is liable to receive the GST input credit for the same.

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7 Replies

sabyasachi mukherjee (26130 Points)
Replied 23 April 2024

Gst registration
raise bill

Pooja Mourya (24 Points)
Replied 23 April 2024

Can they raise bills against the income received before registration

CA Mayank A Jain (Chartered Accountant in Practice) (1035 Points)
Replied 23 April 2024

If the royalty exceeds Rs.20 lacs, then the person was supposed to register under GST and pay GST. If not paid, then it should now raise invoice, pay GST along with interest. The recipient would be able to take credit to the extent used by him for his taxable supplies.

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Pooja Mourya (24 Points)
Replied 24 April 2024

Can the person raise the invoice of rs 20 lakhs which he received before GST registration

David (article Assistant) (1639 Points)
Replied 24 April 2024

Revised invoice can issue

CA Mayank A Jain (Chartered Accountant in Practice) (1035 Points)
Replied 24 April 2024

Yes. Upto 20 lacs (provided there was no other billing in that year) can be issued without taking GST registration. Balance to be billed with GST and GST to be paid to the government.

CA Anoop Kumar Sharma (Accounts Manager) (303 Points)
Replied 24 April 2024

GST registration is not required for turnover up to INR 20 lakh. However, it becomes mandatory to register for GST once the turnover exceeds this threshold, after always issue GST Invoices.