Vat on furniture

[Asked by Guest]

Dear Sir,

We have purchase furniture items from unregistered dealer. He has raised invoice without VAT. In this case who is liable to pay vat amount.

We are body corporate company. We are working in Gujarat state.

Please suggest.

Thanks & Regards,

Sanjay Vasava

[KASTURI SETHI]

If the supply of any goods is exempted in GST, reverse charge mechanism is not applicable. I am talking about the legal position after 1.7.17.

Dear Sir,

I am talking about current sinerio. Please explain who is liable to pay GVAT (Gujarat).

Thanks & Regards,

Sanjay Vasava

[KASTURI SETHI]

VAT is not my cup of tea.

Ok sir.

Thanks & Regards,

Sanjay Vasava

AI Summary

Reverse charge: exempt supplies do not attract reverse charge and may not shift VAT liability to the buyer.
The issue is who is liable to pay GVAT when a body corporate buys furniture from an unregistered dealer who issues an invoice without VAT. Forum responses noted that under the post GST regime exempt supplies do not attract reverse charge (so reverse charge would not apply to exempt supplies), but the advice expressly related to the later GST framework and one respondent disclaimed expertise in VAT; no definitive guidance on the current GVAT liability was provided.