Unregistered Supplier - GST - GST

My earning source is through my website where advt. placed by facebook and google. First earning source is google and i have contract with indian advt. company who sent me payment for google. Second is facebook, who sent payment direct through USA.

For financial year 2020-21, total income through indian company was around 21 lakhs and through Facebook around 20 lakhs. I did not register for GST. For invoice of Indian company, I am supplied and there are not mentioned my gst and mentioned as Unregistered. Reciever's gst mentioned in invoice and they did not pay me for extra for GST. 2% TDS deducted for this under section 194C. So it is contract service.

For current year, income from indian company is around 19.5 lakhs.Now, I applied for gst before some days.

So i need to pay gst for 2020-21 for 21 lakh income which is from indian company? For facebook, i can take LUT.

RCM applicable for this case? If i need to pay all than an i take risk to only pay this year GST and forgot last year? Suggest me best way..

Hey Sagar! Let me break down your situation about GST and give you the best approach:

Your Situation Summary:

Income from Indian advertising company (₹21 lakhs in FY 2020-21, ₹19.5 lakhs in FY 2021-22) without GST registration.
Income from Facebook (foreign entity) paid from USA — export of services.
TDS of 2% under section 194C deducted by Indian company.
Now you’ve applied for GST registration recently.

Key Points:

GST Liability for Past Periods (FY 2020-21 & FY 2021-22)
- Since your turnover from Indian company exceeded ₹20 lakhs (threshold for GST registration), you should have registered for GST and paid GST on supply of services during FY 2020-21 and 2021-22.
- The fact that the invoice didn’t show your GST and client did not pay you GST does not exempt you from paying GST to the government.
- You are liable to pay GST for those periods retrospectively.
Export of Services to Facebook (Foreign Entity)
- Export of services is zero-rated under GST.
- You can supply under LUT (Letter of Undertaking) and no GST is payable on that income.
- You can also claim refund of input tax credit if applicable.
Reverse Charge Mechanism (RCM)
- RCM generally applies when services are received from unregistered suppliers.
- In your case, you are the supplier, so no RCM applies on your supplies.
- However, your Indian client may have to pay RCM if they took services from an unregistered supplier, but since you are registered now, this can be regularized.

What Should You Do Now?

Regularize GST for Past Periods:
- File GST returns for the past periods retrospectively after registration.
- Pay the applicable GST along with interest and possibly penalties for late filing/payment.
- It’s better to voluntarily comply and pay now than wait for notices, which will attract higher penalties.
LUT for Export Services:
- Since Facebook payments are exports, file LUT for the current financial year to avoid GST payment on export income.
GST Registration & Compliance Going Forward:
- Ensure timely GST registration for current and future turnover.
- Issue GST-compliant invoices showing GST amount.
- Collect GST from Indian clients on your services.