Expenses Limit ₹ 5000/-

[Davinder Singh]

Dear Sr,

Kindly share the above limit TO BE ALLOWED WITHOUT GST REVERSE CHARGE CAN BE BOOK AS EXPENSES. WHAT IS THE CONDITION for THE LIMIT e.i. ALL EXPENSES PER DAY OR ONE EXPENSES PER DAY OR ONLY APPLIED ON CASH EXPENSES OR CREDIT EXPENSES,

KINDLY REVERT

[Himansu Sekhar]

Entire expenses per day from in registered buyers if more than 5000, gst will be levied

[rajkumar shukla]

Supplies received by a registered person from ANY OR ALL suppliers in a SINGLE DAY should not exceed ₹ 5000.

[KIRTIKUMAR PUROHIT]

GST applicable if all expenses more than ₹ 5000/- per ડે; and Revers Charge applicable, there no specific clarity on Expenses in Cash or credit, but as per my opinion it will be charged on both, its simple logic that credit expenses will be paid any time in cash or cheque.

[Davinder Singh]

Dear Sir..

Kindly confirm the ABOVE LIMIT ALSO INCLUDES FREIGHT PAYMENT AND AT THE TIME OF CALCULATION OF RS.5000/- LIMIT, ONLY INCLUDES BILL AMOUNT RECEIVED FROM NON REGISTERED PERSON AS WELL AS REGISTERED PERSON AMOUNT.

AI Summary

Reverse charge threshold: daily aggregate supplies to a registered recipient may trigger GST liability when the threshold is exceeded. A reverse charge obligation arises where the aggregate value of supplies received in a single day from one or more suppliers exceeds Rs. 5,000, triggering GST liability on the registered recipient. The daily aggregate threshold is to be applied to supplies from any or all suppliers; practical ambiguities noted include whether freight is included and whether cash versus credit payments affect applicability, with commentary suggesting the threshold applies irrespective of payment mode.