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Is 20 lac is deduct if supply exceeds 25lac

Pushkar Jain (4 Points)

11 June 2018

My query is if supply is 25 lac then first 20 lac reduce and then pay tax on 5 lac or to pay tax on total 25 lac

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Siddharth Goel (Chartered Accountant) (3031 Points)
Replied 11 June 2018

Hi,

Under GST, the limit of Rs. 20 lacs is just for assessing whether to take registration under GST or not. There is no absolute exemption of Rs. 20 lacs from the total value of supply.

Hence, you have to pay tax on the aggregate value of Rs. 25 lacs and not on Rs. 5 lacs.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (184781 Points)
Replied 11 June 2018

If you are registered....... GST is applicable for each and every supply from the date of registration.

But mandatory to register as soon as you cross 20 lakhs and charge GST from that date (but not over supplies made before date of registration).....

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Pushkar Jain (4 Points)
Replied 11 June 2018

Any specific section because till 20lac rs i didnot charge gst on invoice also

Siddharth Goel (Chartered Accountant) (3031 Points)
Replied 11 June 2018

In exercise of the powers conferred by section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, specified that the persons making inter-State supplies of taxable services and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees in a financial year as the category of persons exempted from obtaining registration under the said Act.

This in itself means that there is no absolute exemption but just a stipulation for not getting registered under GST.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (184781 Points)
Replied 11 June 2018

When you got registered under GST?

Whether you were liable to charge GST before registration?

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Chandresh Bardia (Corporate Laws and Indirect Tax (GST) Consultant ) (51 Points)
Replied 11 June 2018

For Registeration Purpose Limit 20 Lac / 10Lac ( as the Cas Maybe)

But For Payment of Tax Depend when you take Registeration - Begining of the Year/Mid of the year

if you take registeration in Mid of the Year than you have to pay GST from the day when you take Registeration, for the Previous Period you dont require to pay GST but at the same time you cant claim ITC for such previous period .