REVERSE CHARGE - THRESHOLD EXEMPTION

[DR.MARIAPPAN GOVINDARAJAN]

Vide Notification No. 8/2-17-Central tax (Rate), dated 28.06.2017 the Central Government fixed the threshold limit of ₹ 5,000/- per day on the value of supplies of goods or services or both received by a registered person from any or all the suppliers, who is or not registered. This exemption is applicable to intra-State supplies. Whether it is applicable also to inter-State supplies?

[KASTURI SETHI]

Sir, In my view, such exemption is not applicable to inter-state supplies. If it is an intent of Govt. to allow such exemption to inter-State supplies, a separate notification is required to be issued.

[DR.MARIAPPAN GOVINDARAJAN]

I am also in the view. However I want to confirm. Thanks sir

[Kishan Barai]

Interstate Supply is not possible without GST Registration , any URD can't do interstate Supply

[Himansu Sekhar]

But there is no limitation for the registered buyer to purchase goods from interstate unregistered buyer. 5000 scheme is also applicable

[Kishan Barai]

True, no issue with purchase.

Restrictions apply on Interstate Supply.

[Himansu Sekhar]

Yes sir

AI Summary

Reverse charge threshold exemption may be limited to intra State supplies; inter State applicability remains contested and unclear.
Whether the reverse charge threshold exemption under Notification No. 8/2-17-Central tax (Rate), dated 28.06.2017 - fixing a per day threshold for supplies received by a registered person from suppliers (registered or not) - applies to inter State supplies is disputed: one view treats the exemption as limited to intra State supplies requiring a separate notification to cover inter State transactions, while others point to practical scenarios where a registered buyer may purchase from an unregistered person in another State and contend the threshold could apply.