Sales / Reverse Charge

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This discussion clarifies GST rules for unregistered dealers purchasing from registered entities. It confirms that unregistered dealers can indeed sell goods to both unregistered and registered persons after adding their margin. Crucially, the reverse charge mechanism (RCM) is not applicable in these scenarios, meaning the buyer does not need to pay GST under RCM, and therefore, no Input Tax Credit (ITC) can be claimed.

sankar ponnan

sankar ponnan (Querist)
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11 August 2020 Sir
I am an unregistered dealer buying goods from registered person with gst.
Q.No.(1): Can I sell the goods after adding margin with the invoice amount to an another unregistered person?

Q.No.(2):Can I sell the goods after adding margin with the invoice amount to a registered person?

If i do so, the receiver should pay gst ON THE TOTAL VALUE OF INVOICE under reverse charge?

If he paid GST under reverse charge, he is eligible for availing ITC?

clear my doubts
thanks in adv