What is the full form of URD in GST?
The URD Full Form in GST is Unregistered Dealer. The GST in India is designed to have a single broad tax base, but it does recognize businesses, which may not exceed the threshold for GST registration. Such businesses are put under the classification of unregistered dealers (URDs) under GST. Now, let us understand what URDs are and what information is relevant to them.
URDs are GST-exempt but have repercussions
A URD cannot claim Input Tax Credit (ITC), which credits GST paid on purchases against GST due on sales. Our items may be less competitive than licensed dealers who may claim ITC. URDs cannot sell interstate goods and services. They may lose market share and growth. Registered merchants buying from URDs may pay GST under reverse charge. This might complicate tax compliance for both parties.
Information about URDs
Learn URDs with this vital information. URDs may register for GST voluntarily if their turnover exceeds the threshold or they predict growth. Voluntary registration provides ITC and company development. URD purchases seldom contain GST. They may pay GST via RCM if they sell taxable goods or services to registered dealers. URDs should preserve accurate sales and purchase records for tax purposes, even if not needed.
URD Provision Changes
GST changes regularly. Monitor URD developments. Before, registered dealers could reverse charge all URD transactions. This rule is suspended. Consult a tax consultant or GST website for the latest information.