GST on less then 20 Lakh turnover.
As per Govt Notification
GST is leviable only if aggregate turnover is more than 20 lacs. (Rs. 10 lacs in 11 special category States)
My friend having a Book shop, registered with his name. Some books sold from other publisher, Some are printed on his press. As per last year his annual sales, less then 20 Lakh. This year, he is targeting to cross 20 Lakh. He may or may not achieve this. He doesn't have GSTN. He is selling the product with bill on MRP and no GST added on bill. But most of his purchase invoice are having GST No.
My Question:
1. Is he doing right till not crossing 20 Lakh?
2. Is he eligible to get input tax credit?
3. When he start charging GST on Bill. (This financial year when he cross 20 lakh or Next Financial year)
4. His sales comes under anti GST/anti profitering business?
5. Is the Govt losing GST for this type of business. more
GST is leviable only if aggregate turnover is more than 20 lacs. (Rs. 10 lacs in 11 special category States)
My friend having a Book shop, registered with his name. Some books sold from other publisher, Some are printed on his press. As per last year his annual sales, less then 20 Lakh. This year, he is targeting to cross 20 Lakh. He may or may not achieve this. He doesn't have GSTN. He is selling the product with bill on MRP and no GST added on bill. But most of his purchase invoice are having GST No.
My Question:
1. Is he doing right till not crossing 20 Lakh?
2. Is he eligible to get input tax credit?
3. When he start charging GST on Bill. (This financial year when he cross 20 lakh or Next Financial year)
4. His sales comes under anti GST/anti profitering business?
5. Is the Govt losing GST for this type of business. more
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View all 6 comments Below 6 comments
He should apply for GSTIN when his turnover reaches 20 lakh. He can avail benefit of Input tax only if he has GSTIN.. If he opts for Composite Scheme, then he cannot avail benefit of Input tax. If he is making Interstate sales then he has to apply for GST irrespective of limit of Rs 20lakh. more
Sep 10
Dear Sir, To the best of my knowledge, up to Rs.40 lakhs, every trader is covered under `Composite Scheme' and he pays a lump-sum tax. Regret I am not aware of total exemption up to the limits given in your mail. Thus, the book-seller must be aware that he needs to register himself just prior to crossing the free limit and also the amount of liability. If he is ignoramus then he should consult a Tax Practitioner preferably a Chartered Accountant. I guess this forum may only misguide him as too many cooks spoil the broth. As regards `Input Tax credit', he will be entitled for it if he has invoices to prove that so much tax has already been paid to his vendor. This input may however be verified from his books of accounts by his auditor as well as Tax Inspectors. One, who doesn't maintain books is not likely to get it. more
Aug 18
4.I reckon that he is doing what he is expected to do as per law till his sales is below Rs.20 Lakhs.He has to pay GET once his sales crosses this number and he can take input credits. more
Aug 14
