TaxTMI 
TaxTMI 
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.
Unregistered person sended goods to Registered person (inter-state)
05 Jul 2017 
3 Replies 
4619 Views Asked by
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. (AI Summary)
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. (AI Summary)