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Supply from unregistered person- gst impact

15 May 2024

any goods/service availed by a registered person from an unregistered person shall be paid under RCM?
and for this self invoicing is mandatory, so how will the same be declared in gstr 1?

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8 Replies

Mohammed Nadeem Ansari (99 Points)
Replied 15 May 2024

Not all goods or services availed by a registered person from an unregistered person are subject to the Reverse Charge Mechanism (RCM). It depends on the specific type of goods or services and the circumstances of the transaction. For instance, security services provided by an LLP, as in the case of AS&D Enterprise LLP, do not attract RCM.

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RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 15 May 2024

Yes I agreed the above said reply.

@ Aditi Jain,

Please refer the above reply...

And ask if You have any specific transactions received from URP. then we can get exact reply from our experts.
Good Luck

CA Mayank A Jain (Chartered Accountant in Practice) (1260 Points)
Replied 15 May 2024

Not all procurement from unregistered persons are taxable under RCM. As on date only 2-3 goods/service (applicable to real estate industry) are taxable under RCM when procured from unregistered persons.