04 June 2019
Dear Experts, If an unregistered dealer in GST sells goods then the one who buys if he is a registered buyer then Reverse Charge Mechanism Applies........What if an unregistered dealer sells goods to an unregistered seller? Who is liable to pay GST to the Govt??
In case both the buyer and seller are unregistered, no one will pay GST to the govt. One has to be registered, then only the GST liability will arise. If you will dig down in it, you will find that govt has already received the GST from the person who has first purchased it from the business and no one has took the credit being unregistered.
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