Reverse charge Sec.9(3) CGST Act'17

[illayyear yanapu]

Dear sir,

As we going through the Sec.9(3) of CGST Act'17, it is stating that The Government may, on the recommendations of the council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.

Here, recipient means un-registered dealer and/or registered dealer?

Even if such specified supply of goods/services/both provided by the registered person to another register person, is recipient will pay tax on reverse charge basis? If yes, how registered person i.e.(Service Provider) will show there turnover in GST return because tax on such service was paid by recipient.

If all these were borne by the recipient let me know intention of introducing Reverse charge Mechanism.

Thank you,

Illayyear

AI Summary

Reverse charge mechanism: recipient must pay GST for notified supplies, even when the supplier is registered.
Reverse charge requires the recipient to pay tax where government notification so specifies, treating the recipient as liable under the Act. Notifications generally identify the recipient as a registered person and bind the recipient to pay even when the supplier is registered; specific entries list covered goods and services and define supplier/recipient roles. Supplies by unregistered persons to registered recipients can also attract recipient liability under reverse charge. For returns and accounting the value of inward supplies on which the recipient pays tax under reverse charge is excluded from the supplier's aggregate turnover.