Hello everyone... About my work I have started a small software development consultancy in 2016. I have some ready made software products and I develop custom software as per client requirement too. I don't sell my products in the form of goods such as Pen drive/CD/DVD. I provide free service to my clients from date of software installation and after that I charge AMC as per the software. My annual turnover is almost 4-5 lakhs and there are only 3 headcounts in my office including myself. How I deal now... I just provide a receipt to my clients at the time sale. I don't file any GST return for my business right now due to lack of knowledge in my business type. My Questions... 1) Is my business is applicable for GST ? 2) Is my business is applicable for Service Tax ? 3) What are the minimum requirement for GST and Service Tax for my business type ? 4) Please suggest everything which I forget to ask. Thank you
Dear,
As you written that your Total annual Turnover is only 4-5 Lacs annual.
GST is applicable only when your annual turnover is reach to 20 lacs.
service tax in not in exist now.
although you want to take registration than you can but it is not compulsory to your business.
if you get registration than you have to file the GST Return every month and charge the GST on your bill.
Thank you for your answer sir but what should I do if my clients ask for valid bill ?
You does not issue the Tax invoice as you are not registered under GST.
You will issue only the simple invoice that is also valid.
1. No
2. No
3. You need to register under GST when you're turnover exceeds Rs. 20 lacs.
Issue an invoice and not a tax invoice.
Hi
1. Since your turnover is below 20 lacs, you are not liable for GST registration.
2. Service tax has been abolished.
3. Turnover of 20 lacs.
4. You have to pay income tax on the profit earned from the business.
Hello,
You should not charge GST as you are well below the threshold limit.
You can issue them a valid bill by mentioning your PAN number instead of GST.
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
Hi,
Since your turnover is below the threshold limit, it is not mandatory for you to register under the GST Act. In case your client asks for a bill you can issue them a tax invoice mentioning your firm name, address, pan.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
