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

AI Summary

Individuals with turnover below 20 lakh must register for GST if liable for reverse charge; composition dealers must pay. A forum discussion addressed whether individuals with a turnover below 20 lakh must register under GST if they receive supplies exceeding 5000 from unregistered persons, and if composition dealers must pay tax under reverse charge. Respondents clarified that such individuals must register for GST if liable for reverse charge tax. Composition dealers must also pay tax under reverse charge but cannot claim input tax credit. It was noted that registration is mandatory for those making interstate supplies, paying tax on behalf of others, or acting as agents, among other categories. Further clarification from the department was suggested.