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Goods purchased from unregistered dealer

Tripti Gaur (Article) (42 Points)

07 July 2017

What provisons of GST will apply when a registered person purchased goods from unregistered person?

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CA Sukesh Bhatia (MANAGER) (1344 Points)
Replied 07 July 2017

Following impacts will be there if purchases are made by registered person from an unregistered person:-

1. RCM will be applicable

2. Invoice will be prepared by purchaser and its details will be uploded by purchaser.

3. Credit will be allowed once RCM is paid.

4. However, as per notification limit of 5,000 has been allowed per day for such cases. That is, if make purchases from all unregistered person(s) in a day, then no RCM applicable

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Tripti Gaur (Article) (42 Points)
Replied 07 July 2017

Thank you so much sir

shweta saxena (yyy) (48 Points)
Replied 07 July 2017

Make sure that limit of Rs 5000 is per day and not per dealer.

SSG (1936 Points)
Replied 07 July 2017

What are the provisions if goods are purchase by registered dealer from composite dealer? Please advise.

CA Sukesh Bhatia (MANAGER) (1344 Points)
Replied 07 July 2017

If registered dealer purchases goods from composite dealer then it will not be treated in the manner as it is treated in case of purchases by registered dealer from unregistered person.
In this case, registered dealer will not have any credit as composite dealer cannot charge GST on his invoice. RCM will not be applied as purchases are made from composite dealer who is a registered person under GST.