Unregistered suppliers utility

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This discussion clarifies how to handle utilities from unregistered suppliers when the material and service benefit a distinct person. You must cross-charge these utilities and issue a tax invoice under Schedule I of the CGST Act. The supply should be valued according to Rule 28, with applicable GST charged after any initial RCM obligations are met.

Rajkumar Gutti

Rajkumar Gutti (Querist)

03 September 2026 From Unregistered suppliers purchase material & also avail service. Said material & service both utility attributable to distinct person.
My question -
Is this material & service utility can we consider in cross charges & required to raise invoce to distinct person or any other else

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

03 September 2026 Yes, the utility of materials and services procured from unregistered suppliers that are attributable to a distinct person can and must be recovered through cross-charging. You are required to issue a tax invoice to the distinct person under Schedule I of the CGST Act, valuing the supply in accordance with Rule 28 and charging applicable GST after fulfilling any initial RCM obligations on the procurement from the unregistered supplier.

Rajkumar Gutti

Rajkumar Gutti (Querist)

03 September 2026 But sir presently there is no any rcm for Unregistered suppliers purchase except notified activities

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