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GST registration not taken

mangesh chitnis (Accountant) (97 Points)

05 November 2023

A service provider had turnover of Rs. 38 lakh for FY 18-19 but he didn't take GST registration also his recipient also didn't pay GST on RCM basis on his bills. Now can he take registration & what about previous defaults? Who will be in trouble either service provider or recipient.

Thank you

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10 Replies

V SUBRAMANIAM (500 Points)
Replied 05 November 2023

What service

mangesh chitnis (Accountant) (97 Points)
Replied 05 November 2023

It's Labour supplier..

V SUBRAMANIAM (500 Points)
Replied 05 November 2023

Service provider has to discharge tax liability underFCM

mangesh chitnis (Accountant) (97 Points)
Replied 05 November 2023

From FY 18-19 itself??

P.S. recipient is also GST registered from 2017

CA Raj Doshi (Practising CA) (8790 Points)
Replied 06 November 2023

Manpower supply is not covered under reverse charge. GST on security services was applicable from 1st of July 2017 on forward charge but it has been brought under Reverse Charge Mechanism (RCM) from 1st January 2019 vide Notification No. 29/2018- Central Tax (Rate) dated 31/12/2018.

LAPSE on the part of service provider to collect GST while the service provider was covered under forward charge does not make the recipient liable for anything. Instead, the service provider if caught will be liable to pay 18% gst from his own pocket. and the service receiver can commercially get away without paying a single penny to the service provider towards the GST error on his part.

sabyasachi mukherjee (26158 Points)
Replied 06 November 2023

First read the relevant sections of rcm.

V SUBRAMANIAM (500 Points)
Replied 06 November 2023

U can avail basic exemption of 20LAKHS

sabyasachi mukherjee (26158 Points)
Replied 06 November 2023

That was always there since 2017.

mangesh chitnis (Accountant) (97 Points)
Replied 06 November 2023

Now service provider is willing to take GST registration as manpower supplier, but does these previous defaults affect him or recipient. As recipient is worried for such big burden of tax & interest, penalty thereon since FY 2018-19