PROVIDE PRACTICAL/ COST COMPETITIVE SOLUTIONS-GST

We area small time manufacturer, consultants and dealers for electronic and solar products. Because of present business conditions, our turnover have been below 20 lakhs since last few years. We have been charging vat/ cst in the past - having proper registeration with govt agencies. Now with changing competition, we deal with both registered companies ( who require proper billing (50% customers) as well as small time end users/ villagers and tier II/III customers (50%)- who are reluctant in paying VAT- to maintain low cost of products. If we do not satisfy them- we lose many small orders- which has already affected sales of our business - in last few years.

Please suggest: 1) Do we apply for GST registeration ( even though turnover below 20 lakhs) and bear heavy a/c maintainence and C.A charges with our limited and tight profits . 2) If NO, then how do we handle both type of customers - Industrail/ sme/msme ( who require GST billing) as well as very small/ micro end users ( GST paid by us on our purchase but because of tighter sale price- GST NOT RECOVERABLE FROM END USERS- LEADING TO HEAVY SHRINKING BUSINESS) , ie how can we recover GST paid on those orders which we buy from registered GST Suppliers- but not recoverable from customers- at the expense of losing business/sales.

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If we have any transaction with unregistered person we have to pay the GSt and claim under RCT-filing of returns etc., more  
Pl apply GST Regn. It will help in the long run. Do not worry about cost and benefits in trade are huge. more  
Since your turnover is below 20 lakhs, you need not register under GST. As you are registered under VAT/CST you should migrate to GST and charge GST on all your sales or services. As you can avail input credit for all your purchases and input services your selling cost would not be very high. more  
You cannot have both types of billing - with GST billing for Industrail/ sme/msme ( who require GST billing) as well as without GST Billing for very small/ micro end users. Further you need to have registeration and do GST billing if you have interstate supplies, even if your annual turnover is less than 20 lakhs. For detailed discussions, you can call me on my cell no. 9313888859. CA Ashok Malhotra more  
you have the vat /cst registration in your business state hence you must migrate to GST registration either you have interstate trade or to provide input tax facility to your customer. more  
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