Small Business GST Dilemma: Do I Need to Register and Pay Without Hitting 20 Lakh?

I am the owner of a small private limited company based out in Bangalore. I have a small security agency, and my income per month is around 2.5 lakhs from two of my clients. My question is, I have not yet got the GST registration done as my income hasn't crossed more than 20 lakhs. And now, if I get the GST registration, do I need to pay the GST despite not crossing the 20 lakh income?

As per your statement, your income is Rs. 2.5 lakh per month, which means your annual income is more than 20 lakh. According to the GST Act, your services are not covered under reverse charge.

What is GST rate for Security Services and cleaning contract persons?

Exactly, the rate is 18%, and it is not covered under reverse charge now. GST registration is required primarily if your annual sales are more than Rs. 20 lakh. Even if your sales are less than Rs. 20 lakh, we suggest that you voluntarily opt for GST registration because:

1. You will not get any tax refunds on purchases (e.g., if you buy goods worth Rs. 1 lakh in a year, and the tax rate is 28%, you will lose a tax refund of Rs. 28,000).
2. You cannot sell outside your state.

You can visit the following link for more information

Read more -- http://www.gstsoln.com/latest-schedu...d-gst-council/
Read more at: Gst on manpower supply - GST Forum

Regards,
Amit

Dear Amit Sir,

He runs a security agency and has no connection to sales. A simple question: were you registered for service tax? If yes, you are required to have GST registration. This requirement specifically applies to your case.