What if GST is not collected from customer?
Tax evasion: Even if he collects any GST in contravention of provisions, he still has to deposit it to the government within 3 months. Failure to do so will be an offence under GST. He obtains a refund of any CGST/SGST by fraud. He takes and/or utilizes input tax credit without actual receipt of goods and/or services.
Can you not charge GST if you are registered?
If you are registered for GST and you sell products that are not GST exempt then you must charge GST. However, you only need to charge GST on non-exempt products. If you are not registered for GST, as you are under the $75,000 threshold, you do not have to charge GST. It is up to you whether you do or not.
Is paying GST mandatory?
TURNOVER BASIS You must collect and pay GST when your turnover in a financial year exceeds Rs. 20 lakhs. [Limit is Rs 10 lakhs for some special category states]. These limits apply for payment of GST.
Do individual consultants have to pay GST?
The GST rates applicable to freelancers are 0\%, 5\%,12\%, 18\% and 28\% depending on the type of service provided. If there is no specified rate for the service provided, you will have to charge 18\% GST from your clients.
What if my supplier does not pay GST?
Firstly, the Court asked that if the supplier had not paid the tax then has the department initiated any investigation or inquiry against the supplier. Secondly, if the supplier had not paid the tax then has the department initiated any recovery proceedings against the supplier.
What happens if a business is not registered for GST?
If a business is not registered for GST, they cannot add 10\% onto the price of their goods/services and claim it as “GST”. Likewise, you cannot claim a GST credit on the purchase as the seller was not registered, even if you have an invoice from them showing an amount as GST.
How do I invoice without GST?
If your customer requests a tax invoice and you’re not registered for GST, provide a regular invoice showing there is no GST included in the price. You can do this by including the statement ‘No GST has been charged’ or by showing the GST amount as zero.
Should freelancers register for GST?
It is widely known that freelancers are required to obtain GST registration and pay 18 per cent Goods and Services Tax for any income earned from these services. This is implemented to those who earn an income that exceeds the threshold of INR 20 Lakhs.
Who are exempted from GST registration?
A business entity with an annual turnover less than Rs. 20 lakh is given exemptions from GST registration. But there are some special category states (Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand) where this threshold limit is Rs.