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payment to unregistered vendor

Asa chandra (8 Points)

31 July 2017

what will the ceiling of payment made to unregistered vendor without reverse charge mechanism under GST?

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9 Replies

CA Vanamala Phani Kumar (Proprietor of M/s Vanamala and Co) (972 Points)
Replied 31 July 2017

I think no limit for that

1 Like

Rounak Varshney (Business) (276 Points)
Replied 31 July 2017

payment upto rs 5000 to unregistered vendor will not attract gst in rcm

1 Like

Rounak Varshney (Business) (276 Points)
Replied 31 July 2017

payment upto rs 5000 to unregistered vendor will not attract gst in rcm

1 Like

Asa chandra (8 Points)
Replied 31 July 2017

but as per circular no 8 its is only in the case of IGST .what about cgst and sgst?

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 31 July 2017

Originally posted by : Asa chandra
	but as per circular no 8 its is only in the case of IGST .what about cgst and sgst?

There is no circular for this, its a notification for the limit of 5000/- which applies to CGST & SGST but not on IGST....

Mr rounak is correct.

Asa chandra (8 Points)
Replied 31 July 2017

ok thank u all

Hemchand Kohli (Accountant) (889 Points)
Replied 31 July 2017

Is 5000 Per day limit ? if yes it means yearly payment may be made Rs. 18 Lac Appx. ?

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 31 July 2017

Yes 5000/- limit is per day for all URD.

Rounak Varshney (Business) (276 Points)
Replied 31 July 2017

Payment to unregistered dealer in rcm will always attract in case of intra state supply. In case of interstate supply dealer has to take compulsory registration in gst as per sec 24 of cgst act.
So no question of attracting rcm in case of payment to urd in case of interstate supply.

1 Like