Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

GST Payment on first 20 lakh upon Registraation

30 May 2022

Hi,

Can anyone please clear on the below issue ?

When my service turnover crossed threshold limit of Rs 20 lakh.
Should I required to pay GST on only sales above threshold or I need to pay GST also on first 20 lakh ?

Example :-
My Total Turnover is 29 lakh
and i have paid GST on 10 lakh after registration.

Should i need to pay tax also on first 19 Lakh supply before registration ??

If yes, then How ?

Reply
Follow
Share

11 Replies

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 30 May 2022

One time exemption for upto 20lacs since GST registration is not applicable.

Once the GST is registered, you have to collect GST on all taxable supplies made from the effective date of GST Registration

Upgrade to CAclubindia Pro. Subscribe Now!

Sanjay Kumar (70 Points)
Replied 30 May 2022

You need not to pay tax on 19 lakh as this is the sale you have made prior to registration and the same is lower than threshold limit

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 30 May 2022

You need to pay GST on turnover made after Registration. No liability to pay tax on turnover before registration

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 31 May 2022

You have to collect and pay GST from the effective date of GST registration or turnover exceeds 20lakhs

sabyasachi mukherjee (27248 Points)
Replied 31 May 2022

The rule is very simple .
gst law says its exempted upto rs.20 lacs.

Upgrade to CAclubindia Pro. Subscribe Now!

CA Puja Sharma (Chartered Accountant) (4984 Points)
Replied 31 May 2022

1st 20 Lakhs turnover will be exempt.

After GST registration, you have to pay GST liability on the sale above Rs. 20 Lacs.

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 31 May 2022

@ Puja Sharma Turnover upto 20 lakhs not exempted, but no tax leviable as assessee is not registered under GST. If person get register in GST then he have to pay GST on each single paisa he received as turnover.

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 31 May 2022

Even if GST registration not done , GST liability araises if turnover crosses 20lakhs.

CA Puja Sharma is right .One Exemption exemption upto 20lakhs . Over and above should be covered through revised invoice once GST is registered

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 31 May 2022

There is difference in exemption and non registration. There is no exemption on 20 lakhs but assessee not required to pay as he was not register if he get register after turnover of Rs. 500000 then he has to pay taxes on turnover made after registration even if turnover is within 20 lakhs threshhold

Mahesh Malhotra (CSA) (67 Points)
Replied 31 May 2022

The terms for GST fillings can be different depending on the type of business you have. GST registration is must above 20 lakh turn over.

A small scale or Nidhi Company Business is something that you can get tax benefit with.

All the services does not have more GST than normal businesses

Upgrade to CAclubindia Pro. Subscribe Now!

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 01 June 2022

@ Rajneet Mishra ,

What is the effective date of GST registration? &
When was the turnover exceeded 20lakhs?

These two dates are required to give straight answer