Reverse charge under GST

[Ganeshan Kalyani]

The threshold limit for registration under GST is ₹ 10 Lacs and ₹ 5 Lacs for North East States. The limit is so low that i assume even a small provisional vendor also would cross it. A consultant or a small service provider or advocate would are also likely to cross the prescribed threshold limit. In view of this limit, my query is what would be the purpose of including the provision of reverse charge in GST ?

AI Summary

Reverse Charge Mechanism in GST: No Threshold Limit for Registration, Impact on Small Vendors Explained A discussion on the Goods and Services Tax (GST) focuses on the reverse charge mechanism and its implications for small vendors and service providers. The initial query raises concerns about the low threshold limits for GST registration, suggesting that even small vendors might exceed these limits. Responses clarify that there is no threshold limit for reverse charge, meaning dealers liable under reverse charge must register for GST regardless of their turnover. The discussion suggests that the government aims to ensure all dealers, whether above or below the threshold, contribute to GST revenue, either through forward or reverse charge mechanisms.