Reverse charge applicable when received from unregistered GTA \Advocate

[Yatin Bhopi]

Dear experts

Recently reverse charge in case of supplies from unregistered supplier has been exempted till 31st March 2018 my query is:

If GTA \ advocate is not registered under GST and if registered person receives services from these unregistered supplier, are we need to pay GST under RCM without considering he is unregistered

[KASTURI SETHI]

If supply of any goods or services is covered under RCM, (if otherwise not exempted under any notification) receiver/buyer will have to pay GST as person receiving service/goods under RCM (from registered or unregistered) is not eligible for threshold exemption of ₹ 20 lakhs.

[Yatin Bhopi]

Thanks Sir for your clarification.

[Nash Industries I Pvt Ltd]

Please check whether the service provider is an agent or owner. GST is applicable on GTA (either forward or reverse charge) under SAC 9965.

If the service provider owns the transport, then GST is payable by the owner as rental services of road vehicles under SAC 9966 and is under Forward charge.

Regards

S.Ramaswamy

[KASTURI SETHI]

Sir, Thanks for more information. Also agree with you.

AI Summary

Reverse charge: recipient liable for GST on supplies from unregistered providers, regardless of supplier registration. Reverse charge applies where a supply falls under the Reverse Charge Mechanism: the recipient must pay GST even if the supplier is unregistered, and the recipient is not eligible for the threshold exemption of Rs. 20 lakhs. For GTA and advocate services, SAC classification and whether the provider is owner or agent determine if the transaction is RCM or forward charge (owner-supplied transport treated as rental/forward charge).