Gst and non gst firm

Dear sir,

my one client have kirana and cosmetic business have gst number in name of his wife

can i will make another non gst firm upto 40 lakh turnover in favour of his son for tax planning point of views either direct tax or indirect tax and business loan point of view or other benefits or son become self dependent by his income-tax return and getting his 1 number ki capital in books of accounts bcz son is not earn any income

Thanks
Dr. Ajay Jajodia
Replies (3)
Quick Summary
This discussion explores the possibility of establishing a separate non-GST business for a son, even if the primary family business already has GST registration. The advice clarifies that a new firm can be set up under the son's name, provided its turnover remains below the GST threshold (currently 40 lakhs). This strategy aims for tax planning benefits, including potential direct and indirect tax advantages, and helps the son build capital and financial independence through his own income.

Yes you can open another business but if turnover exceeds 40 lakh rupees then GST should be registered in the name of the business otherwise if it is less than 40 lakhs rupees then is not required for GST registration and the business should be in the name of his son there is no problem
There are two options depending upon the scale of business and turnover:
it is normal to provide threshold limit for imposition of any tax so that very small taxable persons are out of tax net.
very small taxable persons whose total turnover is less than 20 lakhs are not required to register it is optional .
Sec 22 (1)
Here the business turnover is 40 lakhs so liable to be registered.
He can have one registration number under one company having two business verticals.
I hope Mr. Jadojia your query has been answered.
Thanks
Agree with sourav

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