GST Registration, Goods and Services Tax - GST

[saket s]

Dear Experts,

Pls clarify:

a. If a dealer exceeds registration turnover limit ( i.e. 40 Lkah ) in the month of December & he has applied for Registration. Can he liable to pay GST on turnover during April to November?

b. GST bills received partly before receipt of GST Registration certificate & same party’s bills received partly after GST receipt of GST Registration certificate. Can a dealer claim ITC on bill received prior to GST Registration?

Thanks

Posts / Replies

[KASTURI SETHI]

Sh.Saket s Ji,

Query-wise reply is as under :-

(a) You are liable to pay GST from the date of registration. (No tax is to be paid from April to Nov. )

(b) Yes under Section 18 of CGST Act. See Rule 40(1) of CGST Rules, 2017. FORM ITC-01 has to be uploaded on common portal. Go through carefully.

[NEERAJ KUMAR, RANCHI]

Regarding your first question : you are not liable to pay tax for the period prior to crossing the threshold exemption and seeking registration.

regarding second question. Think yourself, When you did not have registration, how ITC can be credited in your credit ledger for the earlier period.

[KASTURI SETHI]

See Section 18 (1)(a) & (b) of CGST Act. ITC is allowed on inputs held in stock and contained in stock of finished goods and semi-finished goods. Also on capital goods subject to conditions.