Pharma industry ethical dilemma: How can I fight against discounting pressure while threatened with job loss?

Ans: Hello Muthu,

I hope you're doing well.

As a sole trader, if your turnover is not more than 10 lakh per annum, you are exempt from registering for GST. However, if your customers are insisting on GST, it may be because they are registered under GST and are required to collect and remit GST on the goods they purchase.

In this case, you may want to consider registering for GST voluntarily. Voluntary registration will allow you to collect GST from your customers and remit it to the government. It may also allow you to claim input tax credit on your purchases.

To register for GST, you can visit the GST portal and follow the registration process. You will need to provide your business details, PAN card, and bank account details. Once you are registered, you will be issued a GSTIN and can start collecting and remitting GST.

It is important to note that once you are registered for GST, you will be required to file regular GST returns, even if you have no sales or purchases during the period. Failure to file GST returns can result in penalties and interest.

Therefore, you should evaluate whether registering for GST is in your best interest, taking into account the administrative burden of compliance and the impact on your pricing and competitiveness. If you decide not to register for GST, you may want to consider finding customers who are not registered under GST.

I hope this helps. Good luck.

Regards,
Abhishek