Purchase of goods/services from unregistered dealer

[RAKESH SHARMA]

Sir

Earlier there was a notification where no RCM is applicable if supplies/services were received from unregistered persons if the aggregate value of supplies does not exceed 5000 during the period from1.7.2017 to 13.10.2017.

What are the rules in this regard after 13.10.2017.

AI Summary

Clarification on GST rules: Reverse Charge Mechanism for unregistered dealers deferred, key changes effective February 1, 2019. A query was raised about the Goods and Services Tax (GST) rules concerning purchases from unregistered dealers after October 13, 2017. It was clarified that the reverse charge mechanism (RCM) was deferred multiple times, with significant changes effective from February 1, 2019, under the CGST Amendment Act. This amendment allows the government to specify goods or services subject to RCM when received from unregistered suppliers. Further notifications in 2019 outlined specific goods and services under RCM. It was also noted that RCM does not apply to unregistered suppliers, except in specific cases like renting motor vehicles and certain professional services.