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reverse charge mechanism

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This query is : Resolved

karthikrao (Querist)

24 July 2017 Under Reverse charge buyer can purchase from unreg dealer seller from interstate. 2.limit of RS.5000 applicable for both local and interstate? 3.Conditions of availing ITC by buyer He can take ITC from local and interstate? plz clarify.

Saket Agarwal

Saket Agarwal (Expert)

24 July 2017 Hi,

First of all, as per section 24(i) every person making an interstate supply has to compulsorily take registration. Hence, buying from an unregistered dealer interstate is remote.

Still, if in some situation interstate purchase has been done from an unregistered person, it shall also be included in calculating the Rs.5,000 limit.

There are many conditions for claiming ITC - Refer Section 16 of CGST Act and rules made thereunder.
ITC of interstate transactions can also be availed (if eligible otherwise)

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