GST Registration - Professional

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CA
1398 Points Joined May 2014

I have a query with respect to GST registration. A professional's gross revenue is less than INR 20,00,000 from his profession, but his capital gains, interest and other income together with professional income exceeds INR 20 lakhs. Does he have to take GST registration in that case? Also capital gains and other income decrease/increase in different years, so the turnover will have impact in that year if total income is less than 20 lacs. Please share your views.

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On 06 March 2025 at 10:26 Report
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Master in Accounts & high court Advocate
9447 Points Joined December 2011

I'll provide guidance on GST registration requirements based on your query. GST Registration Threshold:

1. *Aggregate Turnover*: The GST registration threshold is based on the aggregate turnover, which includes all supplies made by a person, including exempt supplies and exports [1].

 2. *Exclusion of Certain Incomes*: Capital gains, interest income, and other non-business incomes are not considered part of the aggregate turnover for GST registration purposes [2].

Professional's GST Registration Liability: 1. *Professional Income Below Threshold*: Since the professional's gross revenue from their profession is less than ₹20,00,000, they are not liable for GST registration solely based on their professional income.

2. *Capital Gains and Other Incomes*: The capital gains, interest, and other incomes are not relevant for determining the GST registration threshold, as they are not part of the aggregate turnover. Fluctuating Incomes: 1. *Yearly Assessment*: The GST registration threshold is assessed on a yearly basis. If the professional's total income (including capital gains and other incomes) exceeds ₹20 lakhs in a particular year, it will not impact their GST registration liability, as the registration threshold is based on the aggregate turnover from taxable supplies.

 2. *Voluntary Registration*: If the professional expects their aggregate turnover to exceed the threshold in the near future, they can opt for voluntary GST registration. In conclusion, based on the information provided, the professional is not liable for GST registration solely based on their professional income.

However, it's essential to monitor their aggregate turnover and reassess their GST registration liability annually. Consult a tax professional or chartered accountant to ensure compliance with GST regulations and to address any specific concerns or questions you may have. References: [1] CBIC. (n.d.). GST Registration. Retrieved from https://www.cbic.gov.in/htdocs-cbec/gst/registration [2] GST Council. (n.d.). GST Rates. Retrieved from https://www.gstcouncil.gov.in/gst-rates

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On 06 March 2025 at 10:50
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28009 Points Joined May 2017

Follow sec 22 of cgst act.

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On 06 March 2025 at 15:24


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