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 ?

[DR.MARIAPPAN GOVINDARAJAN]

In my knowledge there is no threshold limit prescribed for reverse charge. We have to wait for the final provisions.

[Ganeshan Kalyani]

Yes sir the dealers liable to pay GST under reverse charge has to get GST registration. There is no exemption threshold limit for the dealers listed in Schedule III of Model GST Law.

In my view, government does not intend to leave any dealer who shall supply goods and or service from GST. Those above threshold shall pay under forward charge (terms used to express) and those below threshold shall be captured under reverse charge. Lot of revenue in the kitty of government is going to accumulate.

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AI Summary

Reverse charge under GST requires registration for liable suppliers with no exemption threshold, ensuring broader revenue capture. Reverse charge under the Model GST shifts tax liability to the recipient for specified supplies and imposes a registration requirement on those liable under reverse charge irrespective of general turnover thresholds; listed dealers in the model schedule do not have a separate exemption threshold, thereby bringing small suppliers and service providers within the GST net through recipient liability.