Purchase from URD

[Kishan Barai]

So if we purchase from URD & pay him via bank & if the amount is below 5000, are we exempted from reverse charge ??

If a buyer of goods is also URD then is he exempted from paying reverse charge even bill cross above 5000 ??

Please elaborate

AI Summary

Clarification on GST Reverse Charge: Section 9(4) of CGST Act, 2017 Explained for Transactions with Unregistered Dealers A discussion on the applicability of the Goods and Services Tax (GST) reverse charge mechanism when purchasing from an unregistered dealer (URD) is presented. The query seeks clarification on whether payments below 5,000 rupees to a URD are exempt from reverse charge. The response clarifies that under Section 9(4) of the CGST Act, 2017, reverse charge applies only when a registered person purchases from an unregistered supplier. If both parties are unregistered, reverse charge does not apply. Further clarification is requested on the exemption for payments under 5,000 rupees.