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Eligibility to charge GST after GST Registration

01 September 2020

My Client has Sales which surpassed Rs.20 Lacs and they voluntarily got GST Registration on 25th August 2020. My question is :

1. Will he start charging GST from 25th August 2020 OR his previous sales will also be chargeable and we may have to charge GST on previous sales also??

2. The party crossed Rs.20 Lacs on 12th August 2020. In between he made Sales of Rs.5 Lacs between 12th Aug to 25th August. Will that Rs.6 Lacs be taxable ?? Or we can give a skip and start charging GST post Registration ??

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5 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 01 September 2020

Your date of application..?

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Abhinav Jain (29 Points)
Replied 01 September 2020

25th August 2020....and got GST certificate on 27th August

Taha (T) (405 Points)
Replied 01 September 2020

Yes it will b e taxable becoz u applied within 30 days of crossing the limit of 20 lakhs on the other hand u will be allowed to take itc of the stock on 12 august

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 01 September 2020

1. If your turnover cross 20 lakh limit ( it's 40 lakh if exclusively engaged in supply of Goods only, no service) on 12th August,2020...and you applied for registration on 25th August, ...in this case you can not apply for Voluntary Registration ...you have to take Compulsory registration by mentioning reason for Registration as " Threshold crossed"

If it's voluntary Registration, than you are liable for GST w.e.f 27th August, i.e grant of registration.

If it's Compulsory, than it's applicable from 12th, August..from crossing threshold and you have to charge GST on that bill also with revised invoice.