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Will the buyer of goods from unregistered person pay reverse tax?

QuestionsCategory: GSTWill the buyer of goods from unregistered person pay reverse tax?
AayushPareek Staff asked 3 months ago

Will the buyer of goods from unregistered person pay reverse tax?

 

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1 Answers
RyanJain Staff answered 3 months ago

A registered person receiving taxable goods or services from a supplier who is not registered, would be liable to pay GST under reverse charge mechanism. However, in terms of notification no. 8/2017-Central Tax (rate) dated 28th June, 2017, aggregate value of supplies of goods and/or service received by a registered person from any or all the suppliers, who is or are not registered, upto five thousand rupees in a day is exempt from tax under reverse charge mechanism. This exemption will not apply if the value exceeds Rs.5000/-.

 

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