My turnover as a freelancer/contractor for 5 months (Apr-18 to Aug 18) is 9,60,000/- from 1 indian client. I work full time for client. To Avoid GST registration and returns my client suggests me to become permanent employee of the company. If I do so my current monthly salary 192000/- will be broken up (with ta/da/hra etc) (for Sep 2018-Mar2019) I think employees dont have to pay GST except income tax as per slab. In this case, would (professional income + salary ) attract any GST complications? Please suggest. My FY 2017-18 turnover was 19,85,000/-
Hi,
You don't need to pay GST once you are an employee. You are correct that employer-employee relationship is out of GST.
However, even if you don't shift to employee model, if your annual turnover is less than 20 lacs, you don't need to appt for GST.
Dear Sir,
Hope you are doing well !
Yes, your understanding is correct.
As employer employee relationship is out of GST scope.
Even if you don't change your status, you don't need to get GST registration provided your turnover is less than Rs 20 lakh.
Thanks & Regards,
Payal Chhajed
Hi,
No, you don't need to register and pay GST once you become employee.
Further, even if you are a freelancer, there is no GST if your annual turnover is less than 20 lacs.
Hi,
No, you don't required GST registration as an employee.
If your aggregate turnover in a financial year exceeds Rs 20 lakhs then you will have to mandatorily register under Goods and Services Tax.
Thanks for quick reply. I work for 1 client only Since May 2019, 1. FY 2017-18: turnover was 19,85,000/- (here gst registration was not required) 2. For FY 2018-19: Approx Turnover is 21,60,000 9,60,000+12,00,000=21,60,000 (Profession + Salary Taxable Income) In this case if my turnover crosses 20 Lac, Do I need to register for GST. And if I register for gst than do I need to pay GST on entire 21,60,000/- or on 1,60,000/- In in next year (FY 2019-20) I will be completly under employee model. Than do I have to cancel gst registration.
You don't need GST registration for FY 2017-18, 18-19 and 19-20.
GST is not applicable where there is an employee employer relationship.
You don't need to get GST registration unless your turnover exceeds Rs 20 lakh.
Hi,
As per the current GST rules, you don't need GST registration for any of the above mentioned years (I.e. FY 2017-18, 2018-19 AND 2019-20).
No, you don't need to get GST registration for all three financial years.
Hi,
No you don't need to get GST registration for all above mentioned years .
Hi,
No you don't need to get GST registration for all above mentioned years .
Yes, you are right.
Yes, you are right.
I don't think you would require GST registration because GST is applicable on the supply made and I don't think providing service as an employee would be covered to count the turnover for GST and since the value of your professional service is below 20 lakh I don't think you will be required to get a GST registration.
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Thank you
Hi,
- In F.Y. 2018-19, you need not to obtain GST registration as turnover from consultancy is less than Rs.20 lacs. There is no GST on salary.
Thanks
Thanks all... It means aggregate turnover does not include transactions which are neither supply of services or goods (employee to employer) But also on the other hand employee to employer services comes under non-taxable supply (not exampt supply) For example if Mr. X earns 15 Lac from salary, 2 Lac from Rent and 10 Lac from Professional services. His Aggregate Turnover for calculating GST registration would be 12 Lac not 27(15+2+10) Lac. Right?
Yes you are right.
Yes, your understanding is correct.
Yes that's absolutely right.
Hi
Yes GST does not apply in case of salary income.
and in other case also it applies when turnover cross threshold of 20 lacs.
Yes, you are correct.
Yes, you are correct.
yes. your understanding is correct.