Registration of GST as besed on RCM applicability

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This discussion clarifies GST registration requirements when Reverse Charge Mechanism (RCM) applies. Generally, if you're liable to pay tax under RCM, you must register for GST, even if your turnover is below the usual threshold. However, specific exemptions exist, such as for legal services if your turnover is below Rs. 20 lakhs, or if you are a trader below the Rs. 40 lakh threshold and not otherwise liable for compulsory registration.

SHYAM KRISHNAN K

SHYAM KRISHNAN K (Querist)
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07 January 2023 As per GST, a person who is liable for pay tax under RCM has to obtain GST registration. As per GST advocate services fall under RCM if i have i have been getting a sevice from advocate, is the registration liabilty will arise upon me. I am a normal trader and my threshold limit is below 40 lakh

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 January 2023 No need for you to register under GST and pay RCM for advocate service as you are within threshold.

SHYAM KRISHNAN K

SHYAM KRISHNAN K (Querist)
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08 January 2023 As per GST registration norms, a person need to pay tax under reverse charge mechanism is classified under compulsory registration. How does it works

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 January 2023 See the notification with updated threshold

Leviability of Legal Services under GST Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 exempts the supply of services provided to
those business entities with an aggregate turnover less than Rs. 20 lakhs (10 lakhs in the case of special category states) in the immediately preceding financial year.

SHYAM KRISHNAN K

SHYAM KRISHNAN K (Querist)
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08 January 2023 If a person liable to pay RCM is required to get registered under gst is isn't it. When i have a trader of cashew or silk yarn, that i purchase it from farmers sale to other party. My aggregate turnover is below 40 lakh in that case i have to register GST compulsory?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 January 2023 In such a it's compulsory.

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