• GST for below 20 lakh turnover business

Hello,

I have recently started a small Salon and beauty parlor business. I need not to but big amount of products from other business. Rather it is mostly depends on skill/labor. The annual turn over of this business will be surely below 20 Lakhs. But I registered my business under GST and got an GSTID. When I registered at that time this 20 Lakh slab policy was not very clear. Now I am reading and hearing from various CAs that I need not to file monthly GST return. Can someone tell me whether I need to file monthly or quarterly GST return? Should I continue this GST registration or cancel? 

Thanks,
Asked 2 years ago in Taxation from United States

GST is not applicable for those assessees whose turnover is less than 20 Lakhs.

Go ahead and surrender your GST registration.

Contact a local tax lawyer/CA.

Vibhanshu Srivastava
Advocate, New Delhi
8957 Answers
153 Consultations

5.0 on 5.0

Hello,

Beauty parlours having more than Rs.20 lakhs of aggregate turnover in a year (In Special Category States, Rs.10 lakhs aggregate turnover in a year) would have to obtain GST registration. Since, the supply provided by beauty parlour and gyms would fall under intra-state supply, GST registration would be required only on crossing the threshold. Also, beauty parlours having service tax registration would mandatorily have to complete GST migration.

If your turnover is not more than the threshold limit then you are not required to get the GST registration.

Regards

Anilesh Tewari
Advocate, New Delhi
17614 Answers
288 Consultations

5.0 on 5.0

A business whose aggregate turnover in a financial year exceeds Rs 20 lakhs has to mandatorily register under Goods and Services Tax. ..

2)application for cancellation of registration by the concerned person who has registered voluntarily will be only after one year from the date of registration.

3)Once you register under GST you have to compulsorily file the return.

4) the registered person has to file NIL return within due date.

Ajay Sethi
Advocate, Mumbai
74388 Answers
4450 Consultations

5.0 on 5.0

Hi,

You need to file quarterly return till your turnover crosses 1.50Cr.

The having GSTID is an advantage as you will be able to claim of GST paid on the sale of products and liable to pay the difference of GST collected.

It is better to continue with the GSTID instead of cancellation.

Vimlesh Prasad Mishra
Advocate, Lucknow
6371 Answers
20 Consultations

4.9 on 5.0

Hi, your query can be best answered by a chartered accountant .. If any legal issue arises , you can post it for consultation

Hemant Chaudhary
Advocate, Gurgaon
4458 Answers
34 Consultations

4.9 on 5.0

1. GST registration is not required for businesses whose turnover does not exceed 20 lakhs annually.

2. You cannot apply for GST cancellation except after a year from the date of registration.

3. Since you have registered under GST you are bound to file the return.

Ashish Davessar
Advocate, Jaipur
28564 Answers
835 Consultations

5.0 on 5.0

1. You need not file GST return since your turn over is less than the prescribed limit.

2. You can get the said GST registration cancelled also.

Krishna Kishore Ganguly
Advocate, Kolkata
24025 Answers
659 Consultations

5.0 on 5.0

As per the provision of GST Act, every registered person has to file return even if its turnover is less than 20 Lakhs. However there is a provision that they have taken registeration when turnover is less than 20 Lakhs. As per the provisions of the GST Act if your turnover is less than 1.5 crore per annum then you have file return on quartely basis.

GOPAL VERMA

ADVOCATE ON RECORD

SUPREME COURT OF INDIA

Shri Gopal Verma
Advocate, New Delhi
239 Answers
3 Consultations

4.0 on 5.0

Hi,

First of all, if you have a GST number then you have to charge GST and pay it to the government. Alternatively, since your sales is below the threshold, then you can apply for cancellation of GST number. If you decide to retain your GST number, then you will have to fill monthly GSTR 3B form and pay GST taxes and file quarterly return in GSTR 1.

Regards,

Keerthiga Sharma

M.Com., CA, LL.B

Keerthiga Sharma
Advocate, Greater Mumbai
44 Answers
2 Consultations

5.0 on 5.0

Quarterly Returns (Taxpayers with Annual Turnover upto Rs. 1.5 Crore can opt for quarterly return filing)

Period (Quarterly) Due dates

July- Sept 31st Dec 2017

Oct- Dec 15th Feb 2018

Jan- Mar 30th April 2018

Return filing is mandatory under GST. Even if there is no transaction, you must file a Nil return.

You cannot file a return if you don’t file previous month/quarter’s return.

Hence, late filing of GST return will have a cascading effect leading to heavy fines and penalty

T Kalaiselvan
Advocate, Vellore
64348 Answers
834 Consultations

5.0 on 5.0

You should not charge GST and file NIL monthly return, if you wish to retain GSTIN.

Anilesh Tewari
Advocate, New Delhi
17614 Answers
288 Consultations

5.0 on 5.0

GST return has to be filed by you as you are having GST registration irrespective of business turnover or profitability in a month. Hence, even if there were no invoices issued during a month, you must login to the GST Portal and submit a NIL return

2)you should Charge GST to your customers

Ajay Sethi
Advocate, Mumbai
74388 Answers
4450 Consultations

5.0 on 5.0

What happens if the taxable person files the return but does not make payment of tax?

In such cases, the return is not considered as a valid return. Section 27 (3) of the MGL provides that the return furnished by a taxable person shall not be treated as valid return unless the full tax due as per the said return has been paid. It is only the valid return that would be used for allowing input tax credit (ITC) to the recipient. In other words, unless the supplier has paid the entire self-assessed tax and filed his return and the recipient has filed his return, the ITC of the recipient would not be confirmed.

As per section 28, a taxable person who has not furnished a valid return shall not be allowed to utilize such credit till he discharges his self-assessed tax liability.

When is GST payment to be done by the taxable person?

At the time of supply of Goods as explained in Section 12 and at the time of supply of services as explained in Section 13. The time is generally the earliest of one of the three events, namely receiving payment, issuance of invoice or completion of supply. Different situations envisaged and different tax points have been explained in the aforesaid sections.

T Kalaiselvan
Advocate, Vellore
64348 Answers
834 Consultations

5.0 on 5.0

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