Query regarding GST

Dear Sir,

Threshold limit for GST registration is Rs.20 lacs. You don't need GST registration. Treat GST paid as Cost of vehicle and claim depreciation on that from business income.

Thanks

Hi,

If your turnover is below 20 lacs, you don't need to register for GST. However, you can voluntary take registartion if you want to claim credit of input tax.

Further, ITC on vehicle is allowed only in following case:

ITC will be available when the vehicle is used for the following.

a) Supply of other vehicles or conveyances

If you are in the business of supplying cars then ITC will be available.

For example, a car dealer purchases a car for Rs.50 lakh plus 14 lakh GST (ignoring cess calculations). The same car was later sold for 70 lakhs along with Rs.19.60 lakh GST. Since he is a dealer, he can claim ITC of 14 lakhs and pay only Rs.5.60 lakh (19.60 – 14).

b) Transportation of passengers

If you are providing transportation of passengers then ITC will be allowed on the vehicle purchased.

For example, Happy Tours purchased a bus for inter-city transport of passengers. ITC is available.

c) Imparting training on driving, flying, navigating such vehicle or conveyances

A driving school purchases a car to give training to students. The school can claim ITC on the GST paid on the car.

d) Transportation of goods

ITC will be allowed on motor vehicles (and other conveyances) used to transport goods from one place to another. However, this is concerning other transporters and not goods transport agencies (GTA).

Hi

Primarily, there is no requirement for GST registration since your turnover will be less than 20 lakhs.

But, if you want to claim input of 3 lakhs GST paid, you can register under GST. Such input will be available equally in 5 years. You will have to charge GST to your customers once you are registered under GST thereby increasing your invoice value.

HI,

There are certain categories where a person needs registration under GST law. Following are the brief pointers for the same-

1. Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)

2. Businesses with turnover above the threshold limit of Rs. 20 Lakhs (Rs. 10 Lakhs for North-Eastern States).

3. Casual taxable person / Non-Resident taxable person.

4. Agents of a supplier & Input service distributor.

5. Those paying tax under the reverse charge mechanism.

6. Person who supplies via e-commerce aggregator.

7. Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person.

In your case, first thing you mentioned that your annual income would be around 13 Lakhs. We dont need the income for determining the threshold of 20 Lakhs. We need the annual sales/turnover figure for checking the registration eligibility.

Moreover, as per the law the limit of 20Lakhs of turnover is required to be checked for the last financial year. As such, if there was no business in existence in the previous year, then you are not required to take registration under the GST law for this financial year.

Thanks

Damini

No, if income is limited to less than 20 lacs no registration required.

Further if you are getting income from ola or uber like online taxi services which also known as e commerce platforms, than in that case though income is less than 20 lacs, registration is must.

Furthermore in no case credit of gst paid on vehicle is available.

You need to register in GST before purchasing commercial vehicles. Otherwise you wont be able to take credit.

If you will register then you have to pay GST on whole of your Sales. I am supposing that it is some passenger transportation vehicle.

In that case you will have to pay 5% on your total Income, but in that case ITC is not available.

But if you opt for paying @12% then ITC will be available. Tax Outgo will be 13 Lacs * 12% = 156000

And ITC will be 3 Lacs. Therefore you will not have to pay any taxes for approximately 2 years, but therefter you will have to pay tax.

I my opinion you shouldn't take registration at this amount of turnover.

If you want credit of gst then you should, otherwise no need.

Are you starting new business with these purchase?

No, there's no other way to claim the input of GST.

Dear Sir,

Without registration under GST, you can't claim ITC.

Thanks

No there is not way you can get the input if GST without getting GST registration.

Credit of gst paid on vehicle is available only if that vehicle is used for transportation business.

If it is used for transportation of passengers, in that case service you providing must b taxable services.

If it is used for transportation of goods than no pre condition of supply of taxable service.

However if you are falling under reverse charge mechanism of gta services, than no credit is available.

In short if you are providing taxable service in reapect of gta than credit can be availed and used for tax payment. Further try to register vehicle in your business name instead of your personal name so purpose of usage can be proved for transportation services.

It is advisable to have GST registration, there is no loss in taking that.

To claim gst paid,u should have gst registration.

Regarding your query, Input tax credit on Motor Vehicle is not available, except in the following cases -

1. Supply of other vehicles

2. Transport of passenger

3. Driving school

4. Transport of goods

If you fall in any of above 4 category, Input credit can be claimed, by taking GSTIN for your business.

Alternative is that you do not take GSTIN for your business and can claim depreciation under Income Tax Act on input tax component

No, for claiming ITC you must register for GST. In case you are starting business with single vehicle then opinion will be same that don't register.

Percentage for Tax is same for goods transportation also. If you register you will have to pay 12% on all your services.In case there are end consumers receiving you service then it will increase the cost of your services for them, as they will not get input of tax charged by you.

Also you will not get credit of full tax charged. The cess component will not be available for credit. You will get credit of GST only.

Hello,

No, Input tax credit for the vehicle cannot be claimed unless you are registered under GST. It is advisable to register urself first under GST and then buy the vehicle.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, FCA, LLB, CERT. FAFP

You canntot clain ITC without regsteration.

Hi,

You have to register for GST in case you wish to avail Input Tax Credit for the purchase of Commercial Vehicle