Dear Experts

Suppose a CA firm doing Bank Branch Audit with following options:

Option 1. All the Branch audit work done within the state,say Tamilnadu.

Option 2. One bank branch audit in Tamilnadu and another in Karnatak

In all the cases the HO of Bank is situated in Delhi and payment also received from Delhi.

Please clarify in which case he has to take registration under GST?

The total gross receipts of CA firm is below Rs.20 Lakhs.

Regards

If services are being provided in the same state, where the service provider is registered, then it is intra state.

So in Option 1, no need of registration for the CA firm as the services are being provided within the state and gross receipts are less than Rs. 20 lacs.

In Option 2, registration is required by the CA firm, irrespective of its gross receipts, as it is providing service in another state.

Presently banks are having centralised registration under service tax. As per my understanding, they now require to take registration under GST in every state, where they are doing business.

Now the question arises, when a CA firm, which is not registered under present service tax, need to apply for GST? Is it better to take service tax no. now and get automatic GST or wait for the GST to roll out (say April 2017)?

Originally posted by : Sunil Kumar
	A case where services are being provided to a branch with in the state, but payment is being made by the head office, registered outside the state. Whether this will taken as inter state supply of service? It is important to note that section 3 & 3A of Draft IGST Act, pointed two things which are, the location of supplier and the place of supply. To determine whether the transaction is Interstate supply or Intra State Supply only above two points require to check. It has nothing to do with the payment mechanism. Therefore, since in above case the place of supply and the location of supplier are in same state, transaction would be called as Intra state supply and not an Inter State supply. Further if we are providing services/supplying goods, outside India, with overall turnover within Rs. Twenty Lacs, is registration under GST required? I am also keen to know whether registration is mandatory in this case or not. I tried alot to find the solution but no such provision in the draft law, which mandate to above assesse register. But according to my undersanding of law, registraion should be must. If registration is not mandatory how such assessee would get the refund of its Input.

Hi SSG,

I find the answer of the query relating to registration, where assessee is doing 100% exports and its turnover is less than 20 lakh.

The definition under IGST Act under section 2(1)(c ) treat export as Interstate trade or commerce. For reference I am quoting the same.

“Integrated Goods and Services Tax” (IGST) means tax levied under this Act on the supply of any goods and/or services in the course of inter-State trade or commerce.

Explanation 1.- A supply of goods and/or services in the course of import into the territory of India shall be deemed to be a supply of goods and/or services in the course of inter-State trade or commerce.

Explanation 2.- An export of goods and/or services shall be deemed to be a supply of goods and/or services in the course of inter-State trade or commerce.

Since, the transaction of export is deemed as Interstate trade-commerce, thus assessee is liable to get registration irrespective of its turnover.

Regards

the exemption limit for service tax assessees under GST is not clear. If my service taxable income is say 15 lacs but export of services is say 20 lacs, do I get exempted from GST?I am a professional and only consulting services is my income,mostly export of services.

In case of Partnership firm of Chartered Accountants having one branch in other state, whether GST registration is mandatory or not?

You can wait till your turnover touches INR 20 lakhs

Thank you. Is the compulsory GST registration for interstate supply related to only those who were previously liable to pay service tax as their receipts crossed Rs 10 lakh?

Mr. Ganapathy,

If your toral receipts are 20 lacs+, then you will need ot enroll and pay GST. Its note about net income. It's about gross receipts!

E.G. If You receive 20 lacs, and make 5 lacs in expenses to conduct the services, then your net income will be 15 lacs. However, sinice your net receipt is 2 lacs, you will need to enroll for and pay GST.

Did I understand your question correctly?

Sinice you are providing services inter-state, you will need ot enroll+pay GST @ 18%.