Tagged: GST Registration
Sections 9(3) & 9(4) of CGST Act, 2017 and Sections 5(3) & 5(4) of IGST Act, 2017 specifies about the liability to pay GST under reverse charge basis.
Section 9(3) read with relevant notifications specifies certain goods/services wherein GST will be payable by the recipient under RCM irrespective of whether the supplier is registered or not. Examples of such services are legal services, goods transportation agency (GTA) services, sponsorship, etc.
If a person is liable to pay GST under RCM on procurement of such specified goods/services, then he needs to obtain GST registration mandatorily even if his aggregate turnover is less than Rs.20 Lakhs
Section 9(4) specifies that every registered person is liable to pay GST under RCM as a recipient on inward supply of taxable goods/services (other than those specified u/s 9(4)) from unregistered persons. GST is payable under RCM by registered persons under this section. So if a person is not registered, then no
GST is payable by him on procurements from unregistered persons (other than specified goods/services u/s 9(3))