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All QuestionsCategory: GST Consultancypurchasing from an unregistered dealer
Profile photo of Divyang parmarDivyang parmar asked 8 months ago

purchasing from an unregistered dealer

This not a question I just want to know that
if I purchase from an unregistered dealer under GST obviously purchase was greater then 5000 now I will be liable to pay tax under RCM but as per notifications RCM is suspended till 30/9/2019 so it will be treated as exempt supplies so no tax need to pay under RCM. and I will be liable to pay tax on outward supplies am I right? 

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2 Answers
Profile photo of Hatim BattiwalaHatim Battiwala answered 8 months ago

Dear Divyang
The said notification was removed by the govt vide Notification No. 01/2019 – Central Tax (Rate) and reverse charge has become applicable on purchase from unregistered dealers, however as per the Central Goods and Service Tax (Amendment) Act, 2018 which was made effective from 1st February 2019, will prescribe the list of persons on whom RCM will apply, government till date has not prescribed the list of said persons hence as of now RCM is not payable on supplies from unregistered person

Profile photo of Consultease AdministratorConsultease Administrator answered 2 weeks ago

As of now no RCM on purchases from an unregistered person. It was only upto October 2017. On output tax liability you are liable if it is a taxable supply. CGST Act was amended via CGST amendment Act.