Query regarding Reverse Charge in GST

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This query is : Resolved

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A GST-registered private limited company is asking if they need to pay GST under the reverse charge mechanism when paying commission to an unregistered dealer. The consensus is that GST reverse charge is not applicable in this specific scenario, as the provision for paying GST on purchases from unregistered dealers has been suspended.

Neha

Neha (Querist)
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16 June 2021 Respected Experts
Please provide guidance A GST registered private Limited Company pays commission RS 25000 to a unregistered dealer. Is the company liable to deposit GST under Reverse Charge. If yes at what rate tax has to be paid.
Thanks in Advance.

Ganeshbabu K

Ganeshbabu K (Expert)
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16 June 2021 Reverse charge not applicable

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CA Altamush Zafar

CA Altamush Zafar (Expert)
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16 June 2021 GST under RCM is not applicable in this case

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CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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17 June 2021 No GST Applicable under Reverse Charge, In the Inception of GST there was a provision to pay GST on URD Purchases but now it has been suspended

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