Trade with unregistered firms attract reverse tax: Expert
By Express News Service | Published: 18th June 2017 04:03 AM |
CHENNAI: Businesses that would have any trade with unregistered sector could face reverse taxation under Goods and Services Tax (GST), according to an expert.
Addressing a session on ‘Into GST and Whatzzz up in Store’, organised by Madras Chamber of Commerce and Industry, N Venkataraman, senior advocate, Supreme Court, said under the GST regime, businesses should avoid any transaction with unregistered companies as everything gets documented and it could result in reverse transaction.
“If you buy goods from businesses not registered under GST than you have to do compliance on their behalf,” he said. As per GST norms, anyone who sells goods and or provides services of more than `20 lakh in a financial year must seek registration under GST. He said those making inter-State supplies must mandatorily register under GST.