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REGISTRATION ON CROSSING THRESHOLD LIMIT

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NINAD TARALEKAR

56 Points Posted on 22 June 2022

In case of service provider total turnover till the date is Rs.18 Lakh.

Next invoice will be of Rs.8 Lakh , due to which service provider is liable for registration.

Now my query is , whether he is liable to collect GST on the invoice of Rs.8 Lakh or from the next invoice he is liable to collect GST?

Replies (17)

Quick Summary

This discussion addresses the crucial question of when a service provider becomes liable to collect GST after exceeding the turnover threshold. The main query is whether GST should be charged on the current invoice that pushes the turnover over the limit, or from the subsequent invoice. Opinions vary, with some suggesting GST applies to the entire invoice amount once registration is mandatory, while others propose splitting the invoice or using a 'Tax Invoice cum Bill of Supply' to potentially exempt a portion.

CA. ANKIT PANDYA

292 Points Posted on 22 June 2022

Try splitting invoice if possible.

CA Rashmi Gandhi

Chartered Accountant

44487 Points Posted on 22 June 2022

You have to take registration immediately and required to pay GST on 8lakh also

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 23 June 2022

GST will be applicable on 6lacs only and not on 8lacs

NINAD TARALEKAR

56 Points Posted on 23 June 2022

@ Eswar Reddy S ..... But hows that possible sir if there is single invoice of Rs.8 Lakh.

CA Puja Sharma

Chartered Accountant

3528 Points Posted on 23 June 2022

In my opinion, you have to pay GST on the entire invoice amount of Rs. 8 Lacs.

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 23 June 2022

@ Ninad Taralekar,

Use "Tax Invoice cum Bill of Supply" instrument

And Don't charge GST on two lacs by giving descripttion about the 2lacs and charge GST on 6lacs only

NINAD TARALEKAR

56 Points Posted on 23 June 2022

@ Eswar Reddy S .... Ok Sir. Thank you. 👍

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 23 June 2022

👍🏻👍🏻

CA Rashmi Gandhi

Chartered Accountant

44487 Points Posted on 23 June 2022

It's completely wrong you have to charged on Full 8 lakhs.

When you take new registration you have to pay from single penny, no exemption available for 20 lakhs.

CA Puja Sharma

Chartered Accountant

3528 Points Posted on 24 June 2022

Yes I will agree with @ CA Rashmi Gandhi, from the effective date of registration you have to pay GST on every outward supply. No such exemption will be available even if the exempted limit of Rs. 20 Lacs was completely used or not.

Suppose you apply for GST registartion when your turnover was Rs. 5 Lacs only, you have to pay GST on every outward supply from the date of registration.