Reverse Charge

[Lakshmi NV]

If an assesses turnover if below 20 Lakh he is not required to take registration under GST Act.my doubt is,if such person receives supplies from unregistered person more than ₹ 5000, whether he is liable to take registration under GST for payment of tax under reverse charge .

What if a composition dear makes purchases from unregistered person.is the composition dealer liable for the payment of tax under reverse charge basis.Can he claim the amount paid under reverse as input credit in gst Return of Next Quarter

[PAWAN KUMAR]

It is complusorily to take registration in case the person is :

1.person making interstate supplies

2.person liable for tax under reverse charge

3.every casual taxable person

4.person required to pay tax on behalf of others

5.person supplying goods srrvices thru eco

6.every eco

7.tds deductor

8.person supplying goods service on behalf of principal acting as an agent.

[DR.MARIAPPAN GOVINDARAJAN]

1. He is liable to pay tax under reverse charge and liable to take registration.

2. The person who opts to composition levy under section 10 is also liable to pay tax under reverse charge and he can take credit.

[KASTURI SETHI]

Ans.No.2 given by Sh.Mariappan Govindarajan, Sir has cleared my doubt. Thanks.

[Ramesh Kothari]

1. if purchase more than 5000 tax applicable irrespective of URD u hv to get registered. Take another opinion or get clarification from dept if any different view Pl update me

2. In composition scheme no ITC allowed

Re vert back

 

AI Summary

Reverse charge registration required when recipient must pay tax; composition liability and input credit treatment remain disputed. Registration is compulsory for any person liable to pay tax under reverse charge, regardless of turnover thresholds; contributors also note various other mandatory registration categories. For composition taxpayers, forum replies conflict: some assert composition dealers must pay reverse charge and may claim input credit, while others contend composition entitlements bar claiming input credit for taxes paid under reverse charge.