• GST for software development company

I have two doubt

1. if I applied for GST today (19 June 2020) and got GST number in a few days. so now I also have to pay GST for 1- June to 18 June 2020 translations? or only after the applied date...


2. when GST number is compulsory for software development companies. some CA says 20 lakhs and some are saying 40 lakhs...

which one is correct?
Asked 4 years ago in GST

No you can charge GST after allotment of GST number. You can issue provisional invoice and after getting GST no. You can get final invoice. 

It is compulsory after 20 lakhs. 

Vidya Jain
CA, Kolkata
1008 Answers
58 Consultations

4.8 on 5.0

Hi

 

1. Check the validity date in the GST Registration certificate. If you would have written in the application the liability to register as, say, 1st June, it would be applicable from 1st June. If you would have issued invoices between 1st June till date of receipt of GSTIN, you need to revise all those invoices, charge and collect GST and show the same in your returns.

 

2. For supply of services, the threshold limit is INR 20 lacs. INR 40 lacs limit is in case of supply of goods. Since you are into software development which would be supply of services only in general course of business, INR 20 lacs limit shall apply in your case.

Lakshita Bhandari
CA, Mumbai
5687 Answers
908 Consultations

5.0 on 5.0

Hello,

 

1. From the date of GST registration. Provisional invoices can be issued until the receipt of the GSTN.

2. The threshold for registration applicable to your case is Rs. 20 Lakhs. The threshold for supplier of goods is Rs. 40 Lakhs.

I hope this answer satisfies your requirements. 

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2608 Answers
16 Consultations

5.0 on 5.0

It depends on which date were you liable to register and on which date you received registration.

You cannot charge GST before you were registered.

Are you providing service to develop software or selling packaged and developed software.

If you are providing services 20 lakh if selling packaged software 40 lakh.

If both then 20 lakh.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4265 Answers
96 Consultations

5.0 on 5.0

GST will be applicable from the date of registration.

GST registration limit is 20 lacs for supply of services. For supply of goods registration limit is 40 lacs. Since you are covered under supply of services 20 lac limit will be applicable to you.

Ruchi Goel Anchal
CA, Gurgaon
525 Answers
16 Consultations

5.0 on 5.0

1. You have to pay GST on entire transactions in June 2020.

 

2. Software development is categorized as services under GST unless sold in a packet. For services, registration is required once the threshold for turnover crosses to Rs.20 lacs. If it is export and you are receiving consideration in foreign exchange then you can export it without payment of taxes after applying LUT.

Vivek Kumar Arora
CA, Delhi
4825 Answers
1030 Consultations

5.0 on 5.0

Hi,

 

Please refer to replies inline below:

 

1. Since you start charging GST on your bills only post receiving GST number, hence you have to pay for the transactions done post receiving GST number.

 

2. There has been no change in Threshold limits for Service Providers. Hence for software development companies, threshold is INR 20 Lakhs.

 

Thanks

Damini

Damini Agarwal
CA, Bangalore
405 Answers
31 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

1. You need to pay GST on entire transactions in June 2020.

 

2. 20 lakh.

Payal Chhajed
CA, Mumbai
5188 Answers
288 Consultations

5.0 on 5.0

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