Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

If a firm does not come within new gst limit, can they not charge gst?

Arun (Business) (81 Points)

25 February 2019

When GST came into effect, the limit was 20L and a firm has registered under GST and supplied bills with GST

Now the limit raised to 40 lakhs and firm total sales is below this.

So can invoices be raised without GST going forward? And GST can be cancelled?

Pls help understand this...

Reply
Follow
Share

12 Replies

CA Varun Khasia (CA) (198 Points)
Replied 25 February 2019

No, you have to issue invoices (with GST) as you were doing earlier. You can apply for cancellation if you want.

Sajal Mandal (294 Points)
Replied 25 February 2019

The limit is 20 Lacs for registration only those who are provide services

subhagan sreerangam (7039 Points)
Replied 25 February 2019

Limit raised ₹ 4000000/- with effect from 01.04.2019 onwards.

M.M Sachora (Tax Professional & Advisor) (1421 Points)
Replied 25 February 2019

You are registered under GST till that you must raise invoice with GST when you cancel GST Registration then you can issue invoice without GST

khalid (soical work) (222 Points)
Replied 26 February 2019

I think notification of 40 lac not applicable yet.

M.M Sachora (Tax Professional & Advisor) (1421 Points)
Replied 26 February 2019

Yes Khalid Notifocation of Rs.40 lakh applicable from 1st April-2019

Mohit Jagnani (Professional - CA firm) (524 Points)
Replied 26 February 2019

Hi Arun,

As given to understand your query relates to fortune of your registration after the said increament in turnover for registration. In this regard you can explore following two options :

1. Getting existing registration cancelled - you can get the registration cancelled, however
before cancellation you need to clear all your liability, there must be some u utilised ITC which you would like to avail before cancellation.

2. Analysis of the opportunity cost and continuing with registration, as without registration input tax will become cost and may impact your business

In may be further noted that limit is criteria for registration, but in your situation were registration had already been availed you will be required to pay GST even if total turnover less that the prescribed limit.

Kindly reach me out if any further clarification is required.

HAPPY TO HELP!!

Mohit Jagnani
+917991155212

1 Like

pritesh (CA Final student) (7101 Points)
Replied 26 February 2019

The new limit will be applicable from 1st april 2019.but still Now no notification released.

After realising of notifications you can apply for cancellation then no need to charge gst.till that you have to charge gst.

Priya Kashyap (Student) (7048 Points)
Replied 26 February 2019

@ Arun
in case your turnover limit (taxable supplies + exempt supplies) exceeds 20 lakhs which is the applicable limit, then you shall be liable to pay GSt in such states where your business has table supplies.
however this while scenario shall change from 1 April 2019 as proposed by GST COUNCIL.

subhagan sreerangam (7039 Points)
Replied 26 February 2019

thank you and congratulations

pritesh (CA Final student) (7101 Points)
Replied 26 February 2019

Please stop commenting tq and congratulations in every post.. everyone is getting notification which is useless .

Priya Kashyap (Student) (7048 Points)
Replied 26 February 2019

@ subhagan
I've something to share
you won't get rewards cuz in the policy of CaClubindia they do review the answers of users which the case applicable to you too
hope you do post related matters and answer.
by the way Namaste dada ji 🙆