I am starting a services business (hiring out tractors and JCBs to factories for earthwork in their premises). Under the new GST Services notification, I am sure we will not cross Rs. 20 lakhs billing in a year and as such it is not mandatory for me to obtain a GST registration for services. But the factory I provide services for insists for a GST registration to even enroll as a services vendor. In this scenario I have the following two queries -
1. Can I obtain a GST Registration and start collecting service tax only if my billing for a financial year exceeds 20 lakhs?
2. Or once registered for service tax is it compulsory to start collecting service tax right from day one for all invoices that we raise irrespective of whether we cross 20 lakhs billing or not?
Please clarify. Thank you.