Small retailers line up for GST number

Vijay C Roy

Tribune News Service

Chandigarh, July 18

In order to become GST-compliant, small traders, retailers and wholesalers in the unorganised sector are setting up new proprietorship firms and applying for GST number. People close to development said since non-compliance under the GST regime may lead to penalties, these traders and retailers don’t want to take any chances and want to start afresh in a transparent manner.

“People are coming forward to get new firms registered and we foresee many new firms will be floated in near future in order to adhere to rules and regulations under GST,” said a tax consultant who facilitates traders and wholesalers in registration and related tax issues.

The small businesses who have got themselves registered under GST and if they undertake any transaction pertaining to purchase of goods or services from a non-registered person, the former shall be liable to pay tax out of his own pocket, and subsequently, all provisions of the GST Act which are applicable to a ‘supplier of goods and services’ shall be applicable to such person.

Sources in the industry said many small retailers don’t pay taxes and don’t show their actual sales. Even many small retailers have never got themselves registered and doing businesses from the past so many years, but they are coming forward to get their firms registered and trying to keep their books transparent under the GST regime.

Tax authorities said tax evasion under the GST is difficult as a provision of invoice matching has been introduced which will begin as soon as all invoices are uploaded by a seller.