I have a turnover less than 5 lakhs. I do software for local vendors. Some time I may have only one project worth 2 lakhs where I work on the same project for 6-7 months. whatever I can't cross 5 lakh turnover anually. Normally I get TDS deducted from my payment. Nowdays my clients are saying that they cannot make payment unless I display GST Number in my invoice. Do I need to apply for GST Number. Some people say there is an option for reverse GST payment where the company pays tax on behalf of me. if its true, once or twice it I can request clients to pay on behalf of me, but in long run it looks awkward, please advice.
Yes, under GST registered clients would avoid to work with unregistered suppliers.
In case you are not registered, then you client has to pay GST under reverse charge mechanism and credit will be available only in next month post payment of tax.
No one would like to get this extra burden of raising invoice and making payment in your behalf. It is better to register under GST as you will have an extra advantage over other your competitors.
1.as per gst act you are not liable to register under gst act.
2. it is true there is a reverce charge machanishm in gst and the purcher/ receiver has to pay tax on the suppyy received from unregistered person but you can explain them that if I get register the tax ie. gst tax shall be charged by me in the tax invoice so there is no cost diffrence for the supply receiver either take supply from registered or unregistered person.
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