Dear Sir/Madam
There is a housing society having around 85 members not registered under GST. They have undertaken major repair work last year around Rs. 50 lakhs but the supplier is an unregistered GST dealer. What will be the tax implications? Please advise how to rectify.
In the prospective of the GST , If unregistered supplier has made repair work at your housing society of Rs 50/- Lacs , then he liable to take GST registration and issue your Housing society a GST Tax invoice, because threshold limit to obtain GST registration for taxable service provider as per section 22 of the CGST act is 20 Lac , and you have paid him 50 Lac , which is more than 20 Lac . Not only this work , considering other work he may have crossed his Turnover, over and above 20 Lac . He can not keep himself as unregistered, ones he crossed threshold limit , he has to obtain GST registration.
Take more Opinion on this.
Thank you sir for your reply.
This supplier has hired individual sub-contractors and assigned them work and payments have been made to sub-contractors in their personal accounts. Since those sub-contractors are also not registered under GST, will there be any problem for the society
Who issued bill to the Housing Society ?. Supplier or Sub Contractors . please elaborate in detail.
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