Need to start Green Card for Businessmen declared bellow 20 Lacs annual turnover

Thanks for your reply posted on Jan 6th. I am able to understand it better. It is very sad if this is happening. Let us say, if an associate's earnings in Dec 18, payable in Jan 19, is Rs 25000.00. it is for the Associate (if not registered with GST) to raise a Debit Note on the NBFC for full amount of Rs 25000.00.. Upon receipt of your Debit Note, the concerned NBFC will processes the same and sends you the payment along with a Payment Voucher (GST has specified a format) with details of payments including deductions, if any, and reasons for deductions made. For any payments they are making to unregistered dealers, they cannot make any deductions for GST specifically. TDS, yes. If an associate (unregistered) has any such Payment Vouchers showing GST deductions, you can easily point out the error to them and request them to reimburse to that extent. The associate is well within the Law for making such claims, as long as the associate is unregistered. All it needs is to have an open discussion with NBFC/Banks/Mutual Funds. From Unregistered firms, the service receiver cannot claim/receive GST. But the service receiver has to pay GST from their end as Reverse Charge and later claim it back as ITC. However the issue is a bit delicate and an Associate may hesitate to brace up such issues with parent body from whom he is earning. I am happy if it is useful. more  

Part 2 This in continuation of my earlier post on this. From what was stated in my previous posting, it may be clear that misuse of ITC by anyone is not possible and even if some one attempts, they will be easily identified. Various compulsory GST returns ensure the same. A GST registered Company suffers payment of Reverse Charges when purchases are made from unregistered dealers. For example if ABC & Co makes purchases from unregistered dealers to the extent of Rs 10 lakhs every month, they have to pay GST as reverse charge an amount of Rs 1 lakh (at 10% on purchase value) from their own pocket and wait for a month to get it back as ITC. It is a financial burden on them and naturally anyone will avoid wherever possible. In order to avoid such financial burdens, it is natural they prefer to buy from registered dealers. In this case, the supplier pays GST after collecting from Buyer, which in turn is returned back to Buyer as ITC. Also Government is also keen to bring as many Traders as possible under GST net to enhance total tax collection, which is also right. Any Organisation genuine and straight in all dealings, will not find it difficult to comply with GST Rules pertaining to returns to be filed. Agreed it is an additional work but when done in good earnestness, it is good to Country as a whole. Following the few simple steps for filing returns on time, no one will ever get notices from GST as these are only meant for defaulters. As long as we are not defaulters, there is nothing to worry. Please be rest assured and get yourself registered under GST irrespective of turnover. It will be beneficial on the long run. more  

I am sure you must have been bitten badly by GST Laws, else you would not have brought this issue up. A little more detail with some example would have been more clearer. Are you saying that an unregistered (in GST) Dealer with a turn over of below 20L is being harrassed by bigger Registered (GST) Dealers and avail undue advantages (like ITC) for purchases from unregistered Dealers? I do not think it is possible? I am open to correction. If I am involved in a Trade/Business with an annual turnover of less than 2 lakhs, I need not register under GST. Advantages - I am spared from submitting those tedious monthly, quarterly and annual Returns and I am never questioned by GST, at least until my turnover goes over 20 lakhs. Advantages are really good but only as long as your turnover remains below 20L. Over the years even a small business grow over this limit and once it does, it becomes liable to register under GST. Disdavnatges - Possibilities of me getting orders/business from Companies/Organisations who are GST registered, is less. Now on harassment by bigger GST registered Companies, availing ITC on purchases from unregistered Companies. Here is example scene ... ABC & Co is a GST registered Company and XYZ Traders is an unregistered company with turnover below 20 lakhs. There is one more Company ANO Tradres and this Company is also registered under GST and supplies same products like XYZ Traders. Let us assume following trade occurs among these Companies. ABC & Co buys Rs 15000.00 worth of products from XYZ Traders, and tax rate is 10%. XYZ Traders Invoice to ABC & Company will be for Rs 15000.00 only as being unrgistered, they are not expected to collect any GST. However, as per GST Rules when a Registered Company buys from Unregistered Company, the BUYER is liable to pay GST as Reverse Charges, declare the same in Returns and pay such tax. Buyer is eligible to get ITC on this transaction. However it must be noted that ITC claimed is only what is paid as Reverse Charge and in no way affects the Supplier. Now if the same purchase by ABC & Company, supplied by ANO Traders, who is also a GST registered dealer, ANO Traders will have to collect 10% GST from ABC & Company and show the same in their Invoice. So their Invoice will show taxable val;e Rs 15000.00, GST @ 10% Rs 1500.00 and total as Rs 16500.00. In this instance also, ABC & Company will be eligible for ITC to the extent it is shown on the invoice. I am stopping this at this stage to avoind lengthy responses; will post a new one to continue from here as Part 2. more  

The provision of ITC needs to be removed from GST. This is being misused to avoid paying tax. As per report in TOI crores of rupees fraud is going on. more  

Mr.Vivek Jaiswal Sir, What is your idea of Green Card ? Can you give your Mobile No. to my Mobile No.9820310489. Thanks. ----- Vikas V. Deodhar, Cost Accountant. more