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Legal Services RCM

P MURUGAN (ACCOUNTANT) (204 Points)

26 December 2024

An assessee whose not registered in gst because of Rs. 1800000

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2 Replies

Rama chary Rachakonda (Master in Accounts & high court Advocate) (8350 Points)
Replied 26 December 2024

As per GST regulations, a person having an annual turnover exceeding ₹40 lakhs (₹20 lakhs for special category states) is required to register for GST.

Since the assessee's turnover is ₹18 lakhs, which is below the threshold limit, they are not required to register for GST.

However, if the assessee is engaged in interstate supplies or provides services, they might still need to register for GST, regardless of the turnover.

Additionally, the assessee might voluntarily opt for GST registration, even if their turnover is below the threshold, to:

1. Avail input tax credits

2. Make interstate supplies without restrictions

3. Increase business credibility It's recommended that the assessee consult with a tax professional to determine the best course of action for their specific situation.

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prasad Nilugal ( GST Practitioner & Accounts ) (14912 Points)
Replied 26 December 2024

As per section 24(iii) of the CGST Act , 2017 (plese refer amended Act till date ) , a unregistered person has to take compulsory Gst registration irrespective of the Turnover , if he is requried to pay under reverse charge , in your case legal services under RCM .

Take more opinion on this .