what about the small assessee if having turnover of below 20 lacs and not opting for registration and want to do sale to the wholesaler(B2B) within the state, as he is a unregistered person and will not issue any bill to the party(wholesaler) in that case the credit wont be allowed to that wholesaler on further sale? Then what will be the consequences for claiming ITC by the wholesaler(registered person).
In this case should the small assessee also opt for fresh registration voluntarily?
if an unregistered (you in this case) person sells goods to a registered person (assuming your customer is registered) then that registered person (your customer) is liable to pay gst under reverse charge mechanism.
Further your customer can take input credit of the amount of gst paid by him on your behalf under reverse charge mechanism.
Since you have not paid under gst hence no question of input credit arises.
However if you sales only to businesses than it is advisable to take registration as business will be reluctant to buy from unregistered dealers due to new reverse charge provision brought in cgst act as it will increase there compliance requirement unnecessary even.
So my advice is that you should take registration if you dont want to lose you business with you b2b customers.
CAclubindia
