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

Reverse charge mechanism applies to specified supplies received from unregistered suppliers, making recipients liable for tax on those services.
An amendment to the CGST Act effective from February 2019 authorises the government to specify categories of goods or services and classes of recipients for which tax on supplies received from unregistered suppliers is payable by the recipient under the reverse charge mechanism; government notifications have listed specified supplies and recipients, including certain professional and transport-related services, who are liable to pay tax under reverse charge when procuring from unregistered suppliers.