GST Registration

Registration 140 views 4 replies
My client is a service provider, he migrated into GST but his output service doesn't excees 20lacs. so my query is does he required to pay service tax.
If yes, so can he surrnder his registration bow to save the tax liability?
Replies (4)
He has to file GST REG 24 for cancelling the registeration within 30 days if he does not want to be taxable person in GST.

he is not required to pay serivice tax because service tax is now ended. 

 The GST law itself grants the basic exemption of Rs20 lakh to the small taxable person. Every supplier shall not be liable to GST if his aggregate turnover in a financial year does not exceed Rs20 lakh.

So the registration under service tax is automatically covnerted to GST and need not separate cancellation. Continue your registration under GST law since your client do not have turnover more than 20 lacs he is not liable to pay any tax under gst

sachin what will be the effect on return,
can you please tell me the section where the exemption clause is written?

Effect on return:

once your client is registered voluntarily he must file returns every month even if his sales are zero. 

Exemption:

sorry i need to make correction in my above comment, The basic exemption of 20 lacs is not available aftre registration.  Once you register for GST either voluntarily or compulsorily you have to pay tax on 1 rupee sale and return must be filed. your client has to pay tax on whatever supply made. There is no exemption clause in return. 

but he can claim input credit if he sells further to registered deler. and wholesaler will sale goods to your client because wholesaler will get input credit by selling goods to your client. 

Concultion: take registration if your client purchases services from a registered dealer and that dealer is asking for GSTIN for his input credit. you can register as input service distributor.

If your client dont want to file rerunts every month then its better to cancel the registration and pay normal income tax. 


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