Can I Charge 0% GST When My Turnover Is Less Than 20 Lakhs?

Who is liable for GST?

2) Who is liable to pay GST.

In general the supplier of goods or service is liable to pay GST.

However in specified cases like imports and other notified supplies, the liability may be cast on the recipient under the reverse charge mechanism..

Is MSME exempted from GST?

Measures taken for the MSME sector under GST: (i) Goods predominantly manufactured and/or used in the unorganised MSME sector have been kept at lower rates or are exempted.

Where is GST not applicable?

Items that are exempted from GST are live fish, fresh fish, bird’s eggs in the shell, fresh milk, fresh ginger, garlic, grapes, melon, unroasted coffee beans, unprocessed green tea leaves, etc. Corn, rice, wheat, maize, soybean, hulled cereal grains, etc.

How much GST does a small business pay?

The goods and services tax rate of 10% is added to the price of goods and services. For example, if you charge $1,000 for your product or service, you will charge your customer $1,100. The $100 that was added is the goods and services tax that you are required to pay to the ATO.

Is GST applicable if turnover is less than 40 lakhs?

GST has reduced the rate at which people have to pay tax. … Businesses with an annual turnover of up to Rs 40 lakh are GST exempt. Initially, this limit was Rs 20 lakh. Additionally, those with a turnover up to Rs 1.5 crore can opt for the Composition Scheme and pay only 1 per cent tax.

Can I sell on Flipkart without GST?

Can I sell on Amazon, Flipkart without GST? You can sell online without GST only if you sell goods which are exempted. If you sell goods on which GST is applicable, then you has to get GST number to be able to sell online. You has to take GSTIN even if turnover is less than Rs.

Can I sell on Amazon without GST?

Yes. If you are listing taxable goods, GST details are required to sell online. You need to provide GST number to Amazon at the time of registration. However, if you are selling only GST exempted categories, then this may not be required.

Who is exempt from GST?

Businesses and individuals are exempt from GST if their annual aggregate turnover is less than a specific amount. At the time of GST implementation in July 2017, businesses/individuals with annual aggregate turnover of less than Rs. 20 lakhs were allowed GST exemption.

What is turnover in GST?

Turnover, in common parlance, is the total volume of a business. The term ‘aggregate turnover’ has been defined in GST law as under: … The aggregate turnover is a crucial parameter for deciding the eligibility of a supplier to avail the benefit of exemption threshold of Rs.

What is the minimum income for GST?

20 lakhsA business whose aggregate turnover in a financial year exceeds Rs 20 lakhs has to mandatorily register under Goods and Services Tax. This limit is set at Rs 10 lakhs for North Eastern and hilly states flagged as special category states. Also, the definition of taxable turnover has been changed to aggregate turnover.

What if my turnover is less than 20 lakhs?

If your turnover is below 20 lacs, you always have an option to surrender your GSTN. Hi, Since you have the GST Registration you will need to comply with the law irrespective if the turnover. You can cancel your registration if your turnover is not expected to cross 20 lakhs soon.

Is GST applicable if turnover is less than 20 lakhs?

You can avail GST exemption if you earn less than Rs. 20 lakh across all financial products irrespective of your physical location. Ask us: I am an IFA from Mysore, Karnataka.

What is the threshold limit for GST?

Rs.20 lakhNew Limits – For Providing Services Persons providing services need to register if their aggregate turnover exceeds Rs. 20 lakh (for normal category states) and Rs. 10 lakh (for special category states).

What is 20 lakh limit in GST?

A business whose aggregate turnover in a financial year exceeds Rs 20 lakhs has to mandatorily register under Goods and Services Tax. This limit is set at Rs 10 lakhs for North Eastern and hilly states flagged as special category states.

Is GST compulsory for small business?

However, any business whose turnover exceeds Rs 40 lakh in a financial year is required to register under GST. … Also, a composition scheme has been introduced under GST for small businesses operating in India. This scheme provides for a lower amount of tax for the businesses having turnover up to Rs 1.5 crore in a year.

What is the GST exemption for 2020?

GST tax: The GST tax exemption amount, which can be applied to generation-skipping transfers (including those in trust) during 2020, is $11,580,000 (increased from $11.4 million in 2019). The rate remains 40 percent.