CA Foundation Exam > CA Foundation Questions > An unregistered firm cannot claim____________...
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An unregistered firm cannot claim____________
- a)Set on
- b)Set off
- c)Set on and set off
- d)None of the above
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
An unregistered firm cannot claim____________a)Set onb)Set offc)Set on...
Unregistered firms cannot claim set-off in GST returns. This means that they cannot adjust the GST paid on purchases against the GST collected on sales. Let's look at this in more detail below.
What is Set-off in GST?
Set-off in GST refers to the adjustment of the GST paid on purchases against the GST collected on sales. This helps in reducing the final GST liability of the taxpayer.
What is an Unregistered Firm?
An unregistered firm is a business that is not registered under the GST regime. As per the GST Act, businesses with an annual turnover of less than Rs.20 lakhs (Rs.10 lakhs for special category states) are not required to register for GST. However, unregistered firms cannot avail the benefits of input tax credit or claim set-off.
Why can't Unregistered Firms claim Set-off in GST?
Unregistered firms cannot claim set-off in GST because they are not registered under the GST regime. To claim set-off, a business should be registered under GST and file GST returns. Since unregistered firms are not registered, they cannot file GST returns and hence cannot claim set-off.
Conclusion
Unregistered firms cannot claim set-off in GST returns. This means that they cannot adjust the GST paid on purchases against the GST collected on sales. To claim set-off, a business should be registered under GST and file GST returns.
What is Set-off in GST?
Set-off in GST refers to the adjustment of the GST paid on purchases against the GST collected on sales. This helps in reducing the final GST liability of the taxpayer.
What is an Unregistered Firm?
An unregistered firm is a business that is not registered under the GST regime. As per the GST Act, businesses with an annual turnover of less than Rs.20 lakhs (Rs.10 lakhs for special category states) are not required to register for GST. However, unregistered firms cannot avail the benefits of input tax credit or claim set-off.
Why can't Unregistered Firms claim Set-off in GST?
Unregistered firms cannot claim set-off in GST because they are not registered under the GST regime. To claim set-off, a business should be registered under GST and file GST returns. Since unregistered firms are not registered, they cannot file GST returns and hence cannot claim set-off.
Conclusion
Unregistered firms cannot claim set-off in GST returns. This means that they cannot adjust the GST paid on purchases against the GST collected on sales. To claim set-off, a business should be registered under GST and file GST returns.
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An unregistered firm cannot claim____________a)Set onb)Set offc)Set on...
Claim set off means when third party takes action against the firm that time on winning, an unregistered cannot ask for payment more than Rs.100it is written under the consequences of non-registration
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An unregistered firm cannot claim____________a)Set onb)Set offc)Set on and set offd)None of the aboveCorrect answer is option 'B'. Can you explain this answer?
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An unregistered firm cannot claim____________a)Set onb)Set offc)Set on and set offd)None of the aboveCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about An unregistered firm cannot claim____________a)Set onb)Set offc)Set on and set offd)None of the aboveCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An unregistered firm cannot claim____________a)Set onb)Set offc)Set on and set offd)None of the aboveCorrect answer is option 'B'. Can you explain this answer?.
An unregistered firm cannot claim____________a)Set onb)Set offc)Set on and set offd)None of the aboveCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about An unregistered firm cannot claim____________a)Set onb)Set offc)Set on and set offd)None of the aboveCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An unregistered firm cannot claim____________a)Set onb)Set offc)Set on and set offd)None of the aboveCorrect answer is option 'B'. Can you explain this answer?.
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