GST is an indirect taxation system in India. Every eligible taxpayer as per the GST Rules and Regulations must register under GST. Every business whether providing goods or services must get GST Registration depending upon a number of factors. The GST also applies to professionals such as Chartered Accountants, Doctors, Teachers, etc. In this article, we will be understanding the threshold limit of GST registration for Chartered Accountants.
What is GST?
GST stands for Goods and Services Tax. It is an Indirect Tax.
It simply means the government levies GST on a wide variety of Goods and Services. Hence, the GST has become an important source of tax to the government.
The GST applies directly to consumption so the final price of goods and services includes GST pays it at the point of consumption. Then the seller or supplier submits this tax to the government through GST Return Filing.
The GST has subsumed many indirect taxes and is completely online. Thus, you can avail the benefits of GST Registration easily. There are also several Advantages of GST Registration for Foreigners.
What is GST Registration?
The process of registering under goods and services tax is GST Registration. After successful GST Registration in India, you get an exclusive GSTIN. It is usable for availing benefits of GST Registration.
Eligibility Criteria for GST Registration
- Every business has an annual turnover of more than Rs. 20 Lakhs and Rs. 10 Lakhs in specific states
- Exporters and Importers
- Businesses supplying Goods or Services on or through e-commerce portals etc.
What is the Threshold limit of GST registration for chartered accountants?
The Threshold Limit of GST Registration for Chartered Accountants is the same. However, if the CA is providing services through an e-commerce platform, he or she must get GST Registration in India even if below the threshold limit.
Documents Required
- PAN
- ID Proof of Directors
- Address proof of the office
- Electricity Bill
- Rent Agreement
GST Registration for Chartered Accountants
Chartered accountants who are registered under the Service Tax Act have a turnover below Rs.20 lakh (excluding special category states) have the option of opting out of the GST laws.
As a result, it might spare them the trouble of complying with the GST laws. However, they will lose credit for any and all taxes paid on their inputs, investment, and input services, which will be a negative consequence.
Furthermore, Regardless of their turnover, a chartered accountant who makes an interstate supply must register [Section 24(i) of the CGST Act]. Similarly, if a chartered accountant is subject to reverse charge, he must register regardless of his turnover [Section 24(iii) of the CGST Act].
SAC Code of GST Registration for Chartered Accountants
When preparing an invoice, keep in mind the type of services supplied and their appropriate service categorization. The most popular service classification, which would include the normal services given by chartered accountants in practice is as follows.
| Service Code | Service Description |
| 997156 | Financial Consultancy Services |
| 998221 | Financial Auditing Services |
| 998222 | Accounting and Bookkeeping Services |
| 998231 | Corporate Tax Consulting and Preparation Services |
| 998232 | Individual Tax Preparation and Planning services |
GSTIN Collection for Chartered Accountants
GSTINs must be collected by all chartered accountants. It should be easily accessible in their database, and they must guarantee that it is displayed on the customer’s invoice. Similarly, The government has momentarily reduced the restrictions governing multiple registrations for e-commerce sellers, but they will be required to do so once the transition period ends. CA’s will have to assist their customers in registering and educate them on the requirements. Aside from that, Chartered Accountants will have to assist their clients with legal and regulatory concerns. Thus, there are also several benefits of GST Return Filing by CA
What are the consequences of failing to register for GST?
GST Registration is required of all persons and companies who meet the qualifying requirements. Defaulters who do not follow the regulations and do not pay the tax or pay in part (due to legitimate errors) rather than in whole are subject to a penalty of 100% of the tax payable. The penalty for failing to register under GST is 10% of the entire tax owed, with a minimum of Rs. 10,000.
Rates of GST for Chartered Accountant’s Services
The GST Council’s schedule of GST Rates contains no explicit category for the services supplied by chartered accountants. It is included in residual entry No. 36, which has an 18% GST charge. As a result, all services supplied by chartered accountants would be subject to GST at the rate of 18 percent. If the supply is intra-state, then 9% CGST and 9% SGST must be paid, and if the supply is inter-state, then 18% IGST must be levied.
Moreover, If you want any other guidance relating to GST Registration, please feel free to talk to our business advisors at 8881-069-069.
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