registration

person to whom threshold limit do not apply for registration

includes person who are liable to pay under RCM.
now there is a situation that i purchase goods from Unregistered person .
im also unregistered, should i take registration in this case?
Replies (12)

No........ the RCM applies to registered dealer not to unregistered.....

but when we read the definition of requirements of registration..it seems so

Section 9(3)  of CGST act, "Levy & Collection" in case of Reverse Charge

1. The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.

and 9(4) of CGST act "Levy & Collection" in case of Reverse Charge

2. The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
Note the dfference......

Every supplier shall be liable to be registeredunder GST Law in the State from where he/she makes a taxable supply of goods and/or services if his/her aggregate turnover exceeds thresholds mentioned above. However, certain categories are required to get registered mandatorily irrespective of the thresholds:

Persons making any Inter-State taxable supply (e.g. from Delhi to Maharashtra)

Casual Taxable person (No fixed place where GST is applicable)

Non-resident Taxable person (No fixed place in India)

Persons who are required to pay tax under Reverse Charge
Every supplier shall be liable to be registeredunder GST Law in the State from where he/she makes a taxable supply of goods and/or services if his/her aggregate turnover exceeds thresholds mentioned above. However, certain categories are required to get registered mandatorily irrespective of the thresholds:

Persons making any Inter-State taxable supply (e.g. from Delhi to Maharashtra)

Casual Taxable person (No fixed place where GST is applicable)

Non-resident Taxable person (No fixed place in India)

Persons who are required to pay tax under Reverse Charge

Sir, in this last point it says that person who is liable to pay under RCM no threshold limit applies.. so does it mean every unregistered buyer has to take registration cz his supplier is unregistered and no tax is paid to govt
if not so , what would be the case where buyer and supplier both are unregistered

Yes....... 'If required to pay under RCM' ......... means for such goods or services as applicable u/s. 9(3) of CGST....... (which are specifically notified under RCM)...... and not for services from URD as under section 9(4) of the CGST act....... (as it is not applicable to URD)

 
if not so , what would be the case where buyer and supplier both are unregistered

Not mandatory to register for intrastate supplies (unless for specifically notified good/services) till turnover upto 20/10 lakhs.......

understood.. thank you

Dear Sir.,

How to we Get RCM related tax as ITC...?

I think its not to benefit. Bcoz, First of we pay the tax in Cash for the purchase (URD). After we take ITC as Our Payment. So, What is the exact benefits...?

I think no more benefits and Loss. Its first pay cash (add +) next get (less - ) as ITC for the same amount. It's the same as depreciation / SB account interest...

 

Please correct i'm wrong or right...!

My Pleasure

@ S. ELAVARASI........ Yes, you are correct, but that is true for normal tax payer. Composition traders do not get ITC but pay under RCM........... still it should have been made easier.......

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