Another thing the CA mentioned is: After registering for GST, you also have to add LUT (letter of undertaking) in the portal.

👋🏼 Parbhat, Can you do this and let us know how easy/tough it is ?

hello, I am also looking for ways to avoid it. It is a burden to file a GST return every month. In the end, there is only compliance and no tax to govt.

Ah! Okie !! I am sorry I missed that part 😅 🙏🏼

np. I will post about it if I end up taking one.

Looks like gst is a very corrupt department prone to extorsionism. The maximum risk in not doing it even if officer insists looks like maybe 10-15k fine plus requirement to do it going forward, if done above the board and fully legally. I commisioned a risk analysis for now. I won't do it probably unless asked to. There are no cases so no history of how ambiguities are resolved. Ours looks like it is exempt from gst compliance but law is not very clear. Some are taking a conservative approach and filing gst.

yup, one CA also suggested the max risk is fine for not taking GST number. He said fewer issues below 20 lpa. But recommended taking if go above 20lpa.

I guess you are fine below 50lpa without GST! File your taxes under 44ada

Looks like I have bigger headaches. Foriegn invoices if unpaid for more than 3 months are a pain paperwork wise apparently.

If the amount is above 20lpa while filling ITR using 44ada (presumptive taxation for professionals), it will not be processed. As GST number is required if the amount is above 20. My friend has to take GST number last year because of this issue.

I think 20lpa of taxable income, that is what my CA consultant guy told me. So, when I said 50 that was total income!

yeah, things are kind of complicated here. It seems best to avoid GST number until it is possible.

Official verdict from my CA and her team is that it's a grey area. The act mentions that registration is optional if all services are exempt. Under exempt services list there's an entry mentioning nil rated services. That phrase is not used anywhere else, but zero rated services is used. And export of software services, which is a good classification for most of us, is zero rated. Act claims in another part that for exports registration is mandatory irrespective of turnover. Nobody knows which one takes precedence when they conflict.

Ya ya, Indian tax shenanigans only yield fine, it is jail in USA, so we are lucky there! IMO these shizzles figure themselves out with time

Looks like only a few people like us have a GST number.

Hey @worried-librarian-12856

👋🏼 Yashu. The number of returns should be reduced in the future🔻

No offense, but it's India dude nothing reduce here. @worried-librarian-12856

Multiple experts are saying GST is required along with an LUT. Nil rated and zero rated supplies are different, most of us come under zero rated supply, not nil rated. And we are not exempt from GST.

Do experts you talked with suggest a threshold amount after which one should definitely get GST number? Also, the GST is new therefore the govt. is lenient. But who knows what will happen after elections.

Nope. No threshold. If you engage in export of services, you need GST and LUT. Gst department is a mess right now, so they are not enforcing evwrything. But might catch up by end of year apparently.

Hey @tall-postman-9284 and @worried-librarian-12856, Thank you for all the detailed research on this topic 👍🏼 Do you think it makes sense to compile the imp points in a gist or blogpost ?

Probably, yeah.

Sounds good.

Sure if you are dealing with intrastates then you definitely need GST number