TMI BlogWhen is GST liabilty arises?X X X X Extracts X X X X X X X X Extracts X X X X ..... I have GST registration from September 2023 but will cross the threshold in January 2024. Will the GST liability arise in September 2023(Date of registration) OR in January 2024 (date of crossing threshold limit) OR the First month of rent received(April 2023)? Please clarify with legal provisions. - Reply By KASTURI SETHI - The Reply = Dear Querist, Pl. read the reply conjointly. ( Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 22 and 18 of CGST Act ). Sections 23 and 24 are also to be read for crystal clear picture. (i) Section 22 (1 ) says ______if his aggregate turnover in a financial year exceeds twenty lakh rupees. In Service Tax regime it was 'preceding financial year'. (ii) Literal meaning of 'a' is something for the first time. You are entitled to threshold exemption for f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irst t wenty lakh rupees in a financial year. As per Section 22 (1) you are liable to pay tax when you exceed twenty lakh rupees and not prior to the date of registration. (iii) Now if you obtain GST registration voluntarily before crossin g first turnover of twenty lakhs, you will be liable to pay tax from September, 23. (the date of registration) . (iv) As per Section 18(2) of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST Act , you can take ITC on the strength of tax invoices within one year from the date of issue of tax invoice. Section 18(2) A registered person shall not be entitled to take input tax credit under sub-section (1) in respect of any supply of goods or services or both to him after the expiry of one year from the date of issue of tax invoice relating to such supply. (v) Now if you ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... want to avail ITC (if otherwise eligible ) for the period prior to the date of registration, pay tax from April, 23 (rent received) and take ITC. Disclaimer : These are my personal views for academic and education purposes and not for legal and court purposes. - Reply By KASTURI SETHI - The Reply = (i) Also read the procedure for registration laid down in Section 25 of CGST Act . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) You cannot think of paying GST from January, 24. - Reply By Padmanathan Kollengode - The Reply = Once you have taken Voluntary Registration (in sept 2023) before crossing Rs.20 Lakhs, then you will be liable to tax from Sept 2023 itself. To put it differently, if one wants to avail the benefit of Rs.20 / 40 lakhs limit, then registration must be taken only on exceeding the Rs.20 / 40 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lakhs. Once voluntary registration is taken, then there is no threshold limit benefit. - When is GST liabilty arises? - Query Started By: - sakshi goyala Dated:- 10-10-2023 Last Replied Date:- 17-10-2023 Goods and Services Tax - GST - Got 3 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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