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Supply of service by unregistered dealer to registereddealer

dileep (Student CA Final) (3 Points)

17 August 2017

In case of supply of service by unregistered dealer to registered dealer, whether all services are liable under rcm or only the specified services covered under list of rcm is chargable under rcm? If Taxable, Please Specify the Provisio for reference..

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3 Replies

Kaushik Deepak (KD) (Officer Accountant) (1136 Points)
Replied 17 August 2017

supply of service by unregistered dealer to registered dealer is also fall under the provision of RCM

Deepak Gupta (CA Student) (15922 Points)
Replied 17 August 2017

In the given case, RCM will be applicable on all intra-state supplies as the unregistered delaer cannot make inter-state supply.

Sec. 9(4) of the CGST Act, 2017, “The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.”

Exemption available: The aggregate value of supplies of goods or services or both received by a registered person from any or all the unregistered suppliers is less than Rs. 5,000/- in a day is exempted from GST on reverse charge basis [N.N. 8/2017-Central Tax (Rate), dt. 28.06.2017].