GST for Professionals
I have been providing Advisory/Consultancy services for quite some time. I used to Charge Service Tax whenever my Turnover was crossing Rs 10 Lacs p.a.. Now what is to be followed in GST regime? My average turnover remains in the range of Rs 15 - 20 Lacs. Can someone advise? more
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There is NO REQUIREMENT to Register if: last year Turnover was less than 20L and this year's has not yet exceeded 20L. The Service Taker is required to add and pay applicable GST under Reverse Charge, i.e. his cost goes up by 18%, which he can also set-off against GST collected from his Clients. Unfortunately you cannot set-off any GST you've paid to your vendors, if your client is paying GST under Reverse Charge. Unless the Total GST you're paying to your all your vendors in aggregate exceeds Rs.1 Lakh for the year, AND your turnover is less than 20L, I think you need not Register and leave the compliance head-ache to your Customers instead, as an Un Registered Vendor. more
Jul 31
Registration is not mandatory if u provide only intra state consultancy. HOwever if u provide consultancy to GST registered persons, They may require u to register more
Jul 31
Dear Mr. Rajendra Anand, as already commented by learned persons, it is better to get yourself registered under GST cause this will be beneficial to you in many ways e.g. you can avail ITC of services/goods you are using for your business and set it off against your GST liability to be paid. Hope you must be issuing Inter-State Invoices also, if yes, than you must get yourself registered under GST. more
Jul 31
Through RCM- Reverse Charge Mechanism, service taker can adjust GST towards out-put tax. more
Jul 31
Regarding the query from Sri Rajendra Anand, I submit the following:
[1] UPTO 20 LAKHS: GSTIN is exempted if the service receivers are within your state. Your official address is crucial] If your clients are located outside your state, for e.g., Ghaziabad [i feel that you are in Delhi] then you must register with the GSTIN and COMPLY WITH ALL GST PROCEDURES LIKE, INVOICING AS PER PRESCIBED FORMAT, LEVY OF GSTs, COLLECTION OF GSTs, DEPOSIT OF GSTs, SUBMISSION OF ALL RETURNS ETC.
[2] If your service falls within the limitof Rs.20 lakhs, you need not follow the prescibed invoice of bill of supply at all.
[3] But, one alert, BEFORE rendering the services, pls ascertain from your clients whether they are GST compliant and, if so please also ascertain
[a] what is their GSTIN?
[b] Does the service fall under the LIST OF SERVICES NOTIFIED
BY THE CBEC under the REVERSE CHARGE MECHANISM.
[c] the SAC number for your service, which you are rendering
to them
[d] Do they need bill of supply in the Notified format?
[e] The client NEED NOT ASK YOU OR FORCE YOU TO GO IN
FOR GSTIN.
[f] If you do not charge GST, there is no burden on the client,
if the service is not within the Reverse Charge Mechanism.
I would suggest, that, as you are in Delhi, you can easily drive to South Block, and get this clarified from the 'horses mouth', as you can escape getting 'divergent' ideas & suggestions, as the matter is your B & B.
Regards
M.Balachandran
Chartered Engineer,
Hyderabad more
[1] UPTO 20 LAKHS: GSTIN is exempted if the service receivers are within your state. Your official address is crucial] If your clients are located outside your state, for e.g., Ghaziabad [i feel that you are in Delhi] then you must register with the GSTIN and COMPLY WITH ALL GST PROCEDURES LIKE, INVOICING AS PER PRESCIBED FORMAT, LEVY OF GSTs, COLLECTION OF GSTs, DEPOSIT OF GSTs, SUBMISSION OF ALL RETURNS ETC.
[2] If your service falls within the limitof Rs.20 lakhs, you need not follow the prescibed invoice of bill of supply at all.
[3] But, one alert, BEFORE rendering the services, pls ascertain from your clients whether they are GST compliant and, if so please also ascertain
[a] what is their GSTIN?
[b] Does the service fall under the LIST OF SERVICES NOTIFIED
BY THE CBEC under the REVERSE CHARGE MECHANISM.
[c] the SAC number for your service, which you are rendering
to them
[d] Do they need bill of supply in the Notified format?
[e] The client NEED NOT ASK YOU OR FORCE YOU TO GO IN
FOR GSTIN.
[f] If you do not charge GST, there is no burden on the client,
if the service is not within the Reverse Charge Mechanism.
I would suggest, that, as you are in Delhi, you can easily drive to South Block, and get this clarified from the 'horses mouth', as you can escape getting 'divergent' ideas & suggestions, as the matter is your B & B.
Regards
M.Balachandran
Chartered Engineer,
Hyderabad more
Jul 31
