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Kuldeep Singh   23 October 2026

Confusion in gst registration for service category ev business

I am going to take franchise of EV charging 60KW machine from Tata Power under which the customer will be charged with 18% gst. On that location, my annual business turnover will be less than 20 lakhs.

I have been told by the Chartered Accountant of Tata Power that you will have to get gst registration mandatorily as we are charging gst from the customer And as your current account will be opened in the bank, so gst number will be required compulsorily.

I have some confusion in my case, please clarify.

 

1. is it mandatory for me to obtain a GST number even if my annual income/turnover less than 20 lakh ?

2. If gst registration is not required, then what will happen to the gst amount collected from the customer ?

3. is gst number mandatory for bank current account ?



 1 Replies

T. Kalaiselvan, Advocate (Advocate)     25 October 2026

If your annual aggregate turnover is under ₹20 Lakhs (or ₹40 Lakhs if you sell physical goods exclusively in standard states, or ₹10 Lakhs if operating in special category Northeastern/hilly states), GST registration is not required.

An unregistered business is legally strictly prohibited from collecting GST from customers. Under Section 122 of the CGST Act, collecting any amount as "GST" or tax without being registered is an offense.Unregistered businesses must issue a standard commercial bill or bill of supply showing a total price they cannot issue a Tax Invoice, show a separate GST component, or add GST percentage lines.

Under Reserve Bank of India (RBI) KYC guidelines, banks require two entity proof documents for sole proprietorships or small businesses. While a GST certificate is the most common proof, you can easily open a current account without it by providing alternative official documents.


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