Unregistered person sended goods to Registered person (inter-state)

[suresh kumar]

Dear Experts,

If a unregistered person sended goods to registered person inter-state How RCM applies to recipient

and how the format of invoice will generate.

[Guest]

1. RCM will not applied in this case because

As per Section 24 of Goods and Services Tax Act, 2017, Person making any inter - state Taxable supply should be compulsorily registered under the act.

Thus the unregistered person could not make inter state supply without registered under GST.

[suresh kumar]

Registered person is eligible to send goods to unregistered person inter-state in this case RCM will applicable to sender of the goods or not

[MUKUND THAKKAR]

if person is registered than he has to pay IGST in case of supply in interstate.. receiver need to pay the tax under RCM.

AI Summary

Reverse charge mechanism may not apply where law prohibits unregistered persons from making inter state taxable supplies. The dispute asks whether RCM applies when an unregistered person sends goods inter state to a registered person. One respondent states that Section 24 requires registration for inter state taxable supplies, so an unregistered person cannot make such a supply and RCM would not apply to the recipient. Other replies note that where the supplier is registered he must charge IGST on inter state supply and that recipient liability under RCM may arise depending on the supplier's registration status.