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

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.