TaxTMI 
TaxTMI 
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 ???
Purchase from unregistered person
02 Jul 2017 
8 Replies 
7785 Views Asked by
Reverse charge obligation applies when buying from unregistered suppliers; buyer must discharge GST and may claim ITC.
Purchases from unregistered suppliers require the registered buyer to discharge GST, with the tax payable under reverse charge where a specified daily exemption threshold for unregistered dealers is exceeded; tax so paid may be claimed as input tax credit against the buyer's output liability. Maintaining identity details, bills or receipts and proper records is advisable to substantiate purchases and ITC claims; informal cash transactions without documentation are discouraged. (AI Summary)
Purchases from unregistered suppliers require the registered buyer to discharge GST, with the tax payable under reverse charge where a specified daily exemption threshold for unregistered dealers is exceeded; tax so paid may be claimed as input tax credit against the buyer's output liability. Maintaining identity details, bills or receipts and proper records is advisable to substantiate purchases and ITC claims; informal cash transactions without documentation are discouraged. (AI Summary)