I am a Professional, providing designing services to marketing people, particularly in pharma industries. I am not registered under GST since my turnover does not exceeds Rs.20 lacs p.a. I was not registered under service tax also. Now these companies want my GST registration Number if I want to work with them. As far as I know I am not at all liable to get registered under GST as my turnover is below Rs.20 lacs p.a. I am ready to give this declaration to these companies. I will for sure, in future, if applicable, get registered under GST.
Do the companies are compelled by the government not to work with Unregistered Vendors?
As of today, since not applicable, I don't want to get registered. I will not be able to bear the cost of filing the GST returns every year.
Is there any solution to my problem?
Think from company's side. If company pays you and you are not registered under GST. Then company has to pay tax under RCM, create invoices on your behalf and provide these details in company's return.
Why a company will take this extra burden, instead will prefer to trade with a registered person.
For a small company, maintaining details of purchases/expenses from unregistered person may not be a big challenge, but bigger companies have their own set of rules.
Government does no stop any one to deal with unregistered person. But registered person will not prefer to take extra compliance burden on them.
It is better that you take GST registration.
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