When your are providing professional service you need to pay professional tax not GST as you are raising invoices only for professional fee.
GST registration
After my retirement, I now have professional fees income in India relating to consultancy, advisory or training. This amount varies year to year as it is unpredictable and has never exceeded Rs 20 Lakhs in a financial year over the last few years. Therefore, I have not registered under GST Act. I raise invoices on each client only for my professional fees and they pay the GST on reverse charge mechanism. In the current year too, the fees are not expected to be more than 20 lakhs. However, in February / March 2022, lets say I receive some unexpected work and the total fees received for the financial year goes up to Rs 23 lakhs for this financial year. What will be consequences with regard to non-registration under GST ? Would there be a penalty imposed on me for not taking registration?
Asked 4 years ago in Taxation
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
7 Answers
Lets say that in 2021-22, the total fees is 23 lakhs. Will it be necessary to register under GST Act in 2022-23 even though the total fees will most certainly be below Rs 20 lakhs.
Asked 4 years ago
Registration has to be done becuase you don't know how much money you will receive as fee.
Yes you have to register as you are being paid for services rendered.
Dear Sir,
1. Yes you must register under GST Act for 2021-22, since your income has exceeded 20 lakhs.
2. If you don’t file any GST return then subsequent returns cannot be filed. For example, if GSTR-2 return of August is not filed then the next return GSTR-3 and subsequent returns of September cannot be filed. Hence, late filing of GST return will have a cascading effect leading to heavy fines and penalty
3. An offender not paying tax or making short payments must pay a penalty of 10% of the tax amount due subject to a minimum of Rs. 10,000.
Thank you
GST Registration is a process by which a taxpayer gets himself registered under GST.
If you are operating from more than one state, then you will have to take separate registration for each state you are operating from.
GST registration is mandatory for Service providers with the turnover limit of Rs 20 lakh, and in case of special category States, Rs 10 lakh.
Classically, services that are provided by advocates, chartered accountant, company secretaries, cost accountant, doctors, engineers, architects and interior, decorators, teachers are regarded as professionals previously but according to the GST Act, the list has included film artist, music director, editors, singers, story writer and many more as professional services which are known as taxable services.
If GST is collected for the professional charges whose annual turnover is Rs. 20 lakh or more, then the service provider has to register for GST otherwise he may have to consequences as per law.
A taxable person is required to take registration under GST in the following cases :-
(a) Crossing of Threshold limit of aggregate turnover;
- As per law, if the turnover exceeds Rs.20 lakh ,then GST registration is mandatory for Service providers
- Further , GST rates on services comprising of 5%, 12%, 18% and 28% comes with various pros and cons for the consumers. However, government has exempted healthcare and educational services from the purview of the GST.
- Since, your income from the services crossed the said amount , then you have to pay GST .
