Hi,
One of my friends is confused about GST in invoice.
He usually never mentioned GST number in his invoices but the new client is asking to send invoice with GST number.
He doesn't have GST or any company on his name, but his father does. His father's company is an "Enterprise" company like "ABC Enterprise" and deals with stationary items. His father has GST number for his company.
My friend plans on putting the name of his father company on the invoice and add that GST number on the invoice. He wants to know if that is possible to do or does he needs to open a new company for GST in his name?
It is also easy for my friend to use his father's company for GST number as all the tax implications will be handled by his Father's accountant.
From India, Pune
One of my friends is confused about GST in invoice.
He usually never mentioned GST number in his invoices but the new client is asking to send invoice with GST number.
He doesn't have GST or any company on his name, but his father does. His father's company is an "Enterprise" company like "ABC Enterprise" and deals with stationary items. His father has GST number for his company.
My friend plans on putting the name of his father company on the invoice and add that GST number on the invoice. He wants to know if that is possible to do or does he needs to open a new company for GST in his name?
It is also easy for my friend to use his father's company for GST number as all the tax implications will be handled by his Father's accountant.
From India, Pune
If he chooses his father's invoice & GST regn. it's by all means, considered as his father's transactions. Both invoicing & payment against such invoices of his father's only. It's not advisable to do business by borrowing somebody's regn.no.in a long run. May be one or two sales he may do so. What happens if he has to do such sales every day. If he's not willing to have regn. of his own then he has to change the name of his shop and do all his business in his father's name as a branch, which also should be officially validated as a branch. If this is possible then he can do so. Instead if he wants to have a business of his own he should go for GST regn.of his own in his name itself and do/expand his business to surpass his father's business. Under GST regime one can do business without regn.also subject to his aggregate turnover (i.e.his gross sales) should not exceed Rs.20 lakhs p.a.in a financial year. If his turnover exceeds the threshold limit of Rs.20 lakhs there is no way he could avoid the regn. I don't know why he should be reluctant to regr. He should as well avail 'composition' rate of GST if his turnover is within the qualifying limits (including the 'reverse charge' mechanism) which also might help him to enhance his business as he could freely invoice on his own regn. If he would need further info. refer the attachment.
From India, Bangalore
1063From India, Bangalore
This practice is not correct. GST involves detailed information of business and business owners, type of business and various codes in respect of goods and services. It is therefore advised that every single entity doing business and raise invoices to cutomers must have GST as prescribed and with in the purview of turn over limits etc.
We advice ethical practices to be followed in business for ease of business.
From India, Vadodara
We advice ethical practices to be followed in business for ease of business.
From India, Vadodara
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