Sir business upto 40 lakh turn over are exempted from GST registration.
The customer need to pay GST you don't have to pay from pocket .
Applicability of GST for services extended
I have launched a grooming services( saloon) for pets last year. I charge an amount for the services but do not charge any GST as I am not registered under GST. The total turnover in the whole of last year was about 15 lacs and I expect the turnover to go up to 25 lacs in the current year. I incur expenditure of about 60% in the form of staff salaries, and other operational costs I request advice as to whether GST would become applicable and as to whether I need to charge GST from the customers for the services given. If so what is the percentage of GST that I need to charge for grooming services like this saloon. I do not know as to whether the customers would be inclined to pay this additional cost. If they do not pay , should I pay from my pocket?
Asked 6 years ago in Taxation
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8 Answers
Dear Client,
Businesses(Beauty parlors, fitness centers and gyms) whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person.
GST not changeable from customers. And rate is 18%
you have to register under GST as your total turnover this year would exceed threshold limit of Rs 20 lakhs
2) you should charge GST from your customers
3) GST would be 18 per cent on salon services
It's 18 percent now and the apllcability limit is increased from 20 lakhs to 40 lakhs
Hi,
If you are registered under GST provisions and charge the same, the customers will be paying you as per the applicable rates.
As per the law , you are required to raise tax invoice for the customers.
Now the tax invoice is GST Invoice.
You should apply for GST immediately and start doing business and raise tax invoice on every service you deliver.
The Goods and Services Tax (GST) rate for all types of services is based on the SAC Code (Services Accounting Code). SAC is a services classification system which was developed by the service tax department for the demand of service tax.
18% is the default GST slab so the majority of the services fall under it
Beauty parlours, fitness centres and gyms which have more than Rs 20 lakhs of annual turnover (In the Special Category States, Rs.10 lakhs annual turnover) must register for GST. 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. And also the beauty parlours, fitness centres and gyms which have service tax registration have to compulsorily complete the GST registration.
Your services may come under the category of beauty parlor services.
A business whose aggregate turnover in a financial year exceeds Rs 20 lakhs has to mandatorily register under Goods and Services Tax.
