GST REVERSE CHARGE ON TEA & COFFEE SERVICES

[Guest]

if we (registered) are getting tea & coffee service from tea stall (unregistered), GST applicable on this transaction if yes than how many percentage ? any section or act

[Rajagopalan Ranganathan]

Sir,

If the total turnover of the tea/coffee stalls during previous financial year did not exceed ₹ 20 lakhs no GST is leviable.

AI Summary

GST reverse charge may not apply where the service supplier's turnover falls below the statutory registration threshold. GST is not leviable on tea and coffee services supplied by an unregistered stall where the supplier's aggregate turnover in the previous financial year did not exceed the statutory registration threshold; consequently the registered recipient need not account for tax under the reverse charge mechanism for such supplies.