TaxTMI 
TaxTMI 
Reverse charge mechanism: recipient pays GST on notified supplies and taxable procurements from unregistered suppliers, with compliance duties.
Reverse charge shifts tax liability to the recipient in two settings: notified categories of supplies where recipients pay GST on specified goods and services, and procurements by a registered person from an unregistered supplier for taxable supplies. Exempt supplies are excluded and a notification provides a daily de minimis exemption for aggregate procurements from unregistered suppliers. Registration is mandatory for persons receiving reverse charge supplies; time of supply and invoicing rules require recipient self invoicing and payment vouchers; tax paid under reverse charge is available as input tax credit if used in business. (AI Summary)
Reverse charge shifts tax liability to the recipient in two settings: notified categories of supplies where recipients pay GST on specified goods and services, and procurements by a registered person from an unregistered supplier for taxable supplies. Exempt supplies are excluded and a notification provides a daily de minimis exemption for aggregate procurements from unregistered suppliers. Registration is mandatory for persons receiving reverse charge supplies; time of supply and invoicing rules require recipient self invoicing and payment vouchers; tax paid under reverse charge is available as input tax credit if used in business. (AI Summary)
06 Jul 2017 
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