26 June 2017
My friend has medical store having turnover of Rs. 3 lacs. He is unregistered retailers.
He is purchasing from registered person (stockiest/wholesaler). Now his suppliers are forcing him to take GST number saying that they will not get credit if they will sell to a unregistered retailers.
In my opinion this is not true. There is no any provision in GST according to which a registered person can not take input credit if they sell the goods to unregistered retailers.
26 June 2017
Yes you are right there is no such provision under GST.
Actually as you have mentioned that he is purchasing from registered dealers so they are worried because now under GST their compliance is increased, as under GST if a registered person avails any supply from unregistered person then he(i.e registered person) has to deposit tax under reverse charge
26 June 2017
What should i do now? His suppliers are not ready to supply the goods (Medicines) without registration. If i get him register then it will increase his problems. He has to get a computer & software to maintain books of accounts if he is registering himself. i will ask his suppliers to not force him to register.
26 June 2017
Yes if he gets registered then under GST there are huge compliance for registered dealers so only solution is to ask suppliers why they are forcing him as there is no point of him to get registered
CAclubindia
