Income Tax category and GST applicability as Independent Contractor

Income Tax Income from Business or Profession
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Hi team,

Past year - I got a job from US based software company ( not registered in India and don’t have any office here) for remote work (project manager) from India. We have a contract agreement - me being Independent Contractor with a fixed monthly salary (no deductions). The payment is done directly to my savings bank account in INR.

Now the total income is above 20 lakhs. I came to know that I had to register for GST - as this is kind of freelance/consulting/export of services - which I was unaware about. I have already paid my 100% advance tax till date.

Now the entire year has gone- but I have not registered for GST. Is there a penalty for this? How can I resolve this ? Do I have to register a firm, as I have another project in talks which would then add another income (this would be from India) alongwith this for upcoming year.

Plus- I know this year has finished, but can I claim my expenses like phone, internet bills, office setup, computer and all for this year? and can get tax refund in ITR for same.

Also, what form of ITR do I have to fill in?

Appreciate your help here and guidance for upcoming year setup.

Regards,
Nittin

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Hey @knit

Yes, GST registration and filing is mandatory once you cross the limit of 20 lakhs in revenue. Thus, you are liable to take the registration on prospective basis from the date you had crossed the ceiling limit.

Yes, there are 2 ways to show the income in ITR:

  1. Presumptive tax scheme - Show 50% of revenue as expense and pay tax on balance 50%.
  2. Maintain books of accounts and claim the actual expense and pay tax on net profits.

In case of professional income, you can file ITR 4 (in case opted for presumptive tax scheme) and ITR 3 in case regular books are maintained.

We do help with GST registration, in case you want expert assistance for the same.

Thank you.

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