A person is exclusively engaged in supply of exempt goods. So, as per section 23 of CGST Act 2017 he is not required to register.
But as per section 24 if any person receives goods/services liable under RCM the recipient is required to take registration.
However section 24 doesn't override section 23.
Please clarify whether the person is liable to register. If yes, on what grounds.
Menu
Query regarding registration
Replies (5)
RCM full form?
Reverse charge mechanism
A person is liable to register if he is required to pay tax under RCM.
Sec 23 says only exempted Goods and services and does not talk about RCM. And RCM itself means that goods are taxable. So if a person is liable to pay tax under RCM so he have to get registered.
Sec 23 says only exempted Goods and services and does not talk about RCM. And RCM itself means that goods are taxable. So if a person is liable to pay tax under RCM so he have to get registered.
Dear Palak
I agree RCM itself means the supply is taxable. But that supply is taxable for the supplier not for the recipient. In the present case the person is providing exclusively exempt supplies and receiving the supply which are taxable under RCM.
I agree RCM itself means the supply is taxable. But that supply is taxable for the supplier not for the recipient. In the present case the person is providing exclusively exempt supplies and receiving the supply which are taxable under RCM.
In RCM the recipient is required to pay tax. So the receiver of Goods (i.e. Receipent) under RCM have to register himself.
Recent Threads
- Income tax-wrong head challan
- Regarding berthing of vesse
- Schedule FA reporting - peak value and cash MMF
- Partnership firm with foreign national person
- Audit required
- Deemed Withdrawal of ASMT-13 Orders & Adjustme
- Need advise with HRA claim
- Schedule AL limit for FY 2024-25
- Can a person use ITR 1 when she has CG of Rs.250/
- Choice of ITR Form
Related Threads
CAclubindia
