GST registration on F&O turnover exceeding 20 lakhs

Taxation
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I am a full time trader but only trade in cash and pay STCG @ 20%.

I have a small offline business generating around 50k income monthly. The total turnover is around 7 lakhs and so I do not have any GST registration as it’s below the 20L minimum limit.

I was thinking to take some trades in F&O but if my overall turnover exceeds 20 lakhs, will I have to go for GST registration? I really do not want the hassle of filling GST returns every month and hence, avoided F&O so far.

I know GST is not required for F&O but will the combined turnover trigger GST registration for my offline business that’s generating only 7 lakhs revenue?

I tried asking Grok AI and it said, “your offline business turnover of 7 lakhs is what matters for GST, and since it’s well below 20 lakhs, your stock market trading likely won’t affect your GST registration requirement.” However, I am not convinced. Hence, wanted advice from a tax expert.

@Quicko @Jason_Castelino Kindly reply if you can. Will highly appreciate it.

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I am not sure if Grok is the best one to ask. You will definitely get good advice on CA Club India. Full of CAs providing accurate advice as per the regulations.

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Thanks.

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GST Act excludes securities from the definition of goods and services, @Harshajyoti_Das

Hence, it shouldn’t be an issue.

Would still recommend consulting with a CA on this.

@Jason_Castelino are there any benefits with GST registration by traders with other businesses that most of us are not aware of?

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Your understanding is correct. Fno turnover won’t be considered for calculating turnover for the purpose of GST.

No. There aren’t any for a trader.

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