Unregistered Firm and Claims
An unregistered firm cannot claim set on or set off under the Goods and Services Tax (GST) law. Let's break down the reasons why:

Set On
- Set on refers to the ability of a registered person to collect tax from the recipient and pass on the credit of the taxes paid on the inputs to the recipient.
- Since an unregistered firm is not eligible for GST registration, it cannot collect tax from the recipient and therefore cannot claim set on.

Set Off
- Set off allows a registered person to claim credit for the taxes paid on inputs against the taxes collected on outward supplies.
- Unregistered firms do not have a GST registration number, which is required to claim input tax credit. Therefore, they cannot avail of set off benefits.

Set On and Set Off
- The combination of set on and set off is crucial for the proper functioning of the GST system. It ensures that taxes are collected and passed on at each stage of the supply chain, while also preventing cascading of taxes.
- Since unregistered firms are not part of the GST system, they are not entitled to claim either set on or set off benefits.
Therefore, an unregistered firm cannot claim set on, set off, or both under the GST law. It is essential for businesses to comply with the registration requirements to avail of the benefits and fulfill their tax obligations under the GST regime.