For Mobile development Pvt Ltd, is GST needed if turnover below INR 20L?

Dear Querist

You have done good research on the topic. It is clear that since your turnover is less than 20 lakhs you do not need to take registration even if you are making inter state supplies.

For the question that whether registration is required for supplying through e-commerce operator, you need registration only if such e-commerce operator is required to collect tax asper section 52. In the current scenario play store is not required to collect tax. Moreover Notification 65/2017 also provides exemption from registration if turnover is less than 20 lakhs and supplying through e-commerce operator.

So all in all you don't need GST registration if your turnover is less than 20 Lakhs

Hope this helps

Section 52 state that ecommerce operator while collecting money from suppliers listed on their platform will also collect certain amount of GST if the amount is routed through them.

Since your supplies will be through apps the consideration will not be collected by Google Play and therefore TCS will not be collected by it. (My previous reply was on this assumption)

But if through any business model the consideration for your supplies are first being collected by Google play and then reimbursed to you then TCS will be collected by Google Play and in such circumstances registration will get mandatory. But even in this case if your turnover is less than 20 lakhs then registration is still not required as per Notification 65/2017 (Only for service providers)

Therefore in your case even if google play is required to collect TCS or not depending on the business model you are still not required to take registration.

In my opinion, GST registration is not required in the case of service providers(including inter-state supplies)up to the turnover of Rs. 20 Lacs or Rs. 10 Lacs(special category states) vide Not. No. 10/2017.

Further, if a person is a supplier of service and supplying services through e-commerce operators are not required to register under GST if their aggregate turnover is less than Rs 20 lakhs per annum (Rs 10 lakhs in case of specified States) – Notification No. 65/2017-CT

Further, if a person supplies online information and database access or retrieval(OIDAR) services from outside India, that person has to get himself registered under GST irrespective of the turnover in the previous year. However, if he is providing services from India, he can benefit from the exemption based on the aggregate turnover. 

1. Yes sale of mobile app would be calssified under OIDAR

2. Yes registration under GST is not required if aggregate turnover is below Rs.20L/10L

3. Even though google paystore is an e-commerce operator, exemption from registration is available till 20L/10L.

4. No.

5. In respect to domestic sale, you would be liable to pay GST@18% and in case of export sale, you will not be liable to pay GST provided you get consideration in convertible foreign currency (other than INR) and LUT is applied every financial year. Refund of ITC would be proportionate to export turnover.

For detailed discussion, you may opt for phone consultation.

Mobile application is a service.

Yes you need not take GST registration unless your turnover exceeds Rs. 20 lakh.

Yes I think so.

Yes it is possible that your ITC is 5000 and no sales thats normal.

Also, I had read earlier that if you are getting amount as subscription through portal like Google they pay GST to government on your behalf.

Hence, please check if Google is depositing GST on your behalf on amount collected through Google for in-app purchase.

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

Thank you.