Using father's company in Invoice for GST purpose and sending it to client

Hi,

One of my friends is confused about GST on invoices. He usually never mentions the GST number on his invoices, but the new client is asking him to send invoices with the GST number. He doesn't have a GST number or any company in 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 a GST number for his company.

My friend plans to put his father's company name on the invoice and add the GST number to it. He wants to know if this is possible or if he needs to open a new company to get a GST number in his name. It is easier for my friend to use his father's company's GST number as all the tax implications will be handled by his father's accountant.

If he chooses his father's invoice and GST registration, it's by all means considered as his father's transactions. Both invoicing and payment against such invoices of his father only. It's not advisable to do business by borrowing somebody's registration number in the long run. Maybe 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 a registration 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 registration of his own in his name itself and do/expand his business to surpass his father's business.

Under the GST regime, one can do business without registration also, subject to his aggregate turnover (i.e. his gross sales) should not exceed Rs. 20 lakhs per annum in a financial year. If his turnover exceeds the threshold limit of Rs. 20 lakhs, there is no way he could avoid the registration. I don't know why he should be reluctant to register. He should as well avail the '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 registration. If he would need further info, refer to the attachment.

This practice is not correct. GST involves detailed information on business and business owners, the type of business, and various codes regarding goods and services. It is, therefore, advised that every entity doing business and issuing invoices to customers must have GST as prescribed and within the purview of turnover limits, etc.

We advise ethical practices to be followed in business for the ease of conducting business.

You close up all with X as has no GST registration before falling into a ditch. Ask him to do all his business either in the name of his father's agency or has to take GST registration.