Purchase from unregistered person

[Raman Singla]

We buy and pickup scrap from nearby villages/area mostly from unregistered persons.

They accept only cash and maybe they don't provide their Aadhaar UID no.

What is the procedure to purchase from them ???

AI Summary

GST on Scrap Purchases: Registered Buyers Liable; Reverse Charge for Over 5000; ITC Claimable A discussion on purchasing scrap from unregistered dealers under the Goods and Services Tax (GST) framework highlights that the purchasing party, if registered, must bear the GST liability. There is an exemption for purchases up to 5000 per day from unregistered dealers, beyond which the reverse charge mechanism applies. While maintaining the identity of unregistered dealers is not mandatory, it is advisable. The forum also clarifies that transactions below 5000 paid via bank are exempt from reverse charge, but exceeding this amount incurs GST payable by the buyer, who can then claim Input Tax Credit (ITC).