Dear All,
We are running media based company and we have enrolled for GST. We would like to know whether we are entitled for reverse charge mechanism. Do we have to pay tax on the any inward supplies which is from unregistered dealer? If yes, please let us know what are the criteria.
We receive the bills without GST from the unregistered dealers. We are in a doubt whether we need to pay the GST on the reverse charge mechanism.
As per section 9(4) of CGST Act 2017, if a registered person receive goods or services or both upto Rs.5000/day(aggregate) from unregistered suppliers, it is exempted. But it is applicable only in the case of intra state supply of goods. If the aggregate value of such supplies exceeds Rs.5000/day, then GST will be payable on reverse charge basis.(Notification No.8/2017 dated 28th June 2017).
Yes. You are registered under GST then you received the Goods/Services from URD you ll be pay tax under RCM base.
The small relaxation is Rs. 5000/day (a whole day) you don't pay tax under RCM.... If it's exceeded the you fall under RCM.
CAclubindia
