Liable for Registration or not

[BARUN MUKHERJEE]

Respected experts,

Service received from GTA and the GTA issued a RCM invoice.Is the recipient is liable for take registration u/s 24(iii)??

[Gargi Rai]

Yes, GST registration will be required unless the person is exempt from registration under Section 23(2) of the CGST Act 2017 (in instances notification may provide exemption may not be available if RCM services are procured). Section 23(2) of the CGST Act 2017 was recently amended to give an over-riding effect to Section 22(1) and Section 24. 

[KASTURI SETHI]

Pl. elaborate your query with full facts and specific problem.

[KALLESHAMURTHY MURTHY K.N.]

Dear Querist,

Sir, 

According to Section 24(iii) of the GST Act, a person liable to pay GST under the reverse charge mechanism either on account of GTA  or any other reasons must register compulsorily, regardless of the threshold limit.

AI Summary

Reverse charge registration required where recipient pays GST under reverse charge, registration compulsory unless specific exemption applies. A person liable to pay GST under the reverse charge mechanism, including for GTA services, must obtain compulsory registration regardless of the turnover threshold, unless a specific exemption under the registration-exemption framework applies; recent amendments give the registration-exemption provision overriding effect over threshold-based registration provisions, but exemptions may not cover reverse-charge supplies.