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    GST: reverse charge mechanism

    Posted By : Shiriti / Published on : 26-Apr-2018 12:04 AM / View : 700 / Comment : 3

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    Is the reverse charge mechanism applies only to services?
    Read more on : mechanism charge reverse

    • No, Reverse Charge Mechanism is applicable on Goods as well as Services under GST.

      There are two types of Reverse Charge:-

      One is u/s 9(3) of CGST/SGST/UTGST Act or u/s 5(3) of IGST Act, in which Govt. has power to notify specific category of Goods/Services on which Reverse Charge will be applicable and the person responsible has to mandatorily take registration under GST.

      Other is u/s 9(4) of CGST/SGST/UTGST Act or u/s 5(4) of IGST Act, in which a Registered Person has to pay GST on Reverse Charge Basis for all Inward Supplies received from Unregistered Person subject to the Exemption Limit of Rs.5000/ Per Day.

      Note: In the First Case, Govt. has notified 11 Services and 0 Goods till Date. In the Second Case, the Term is used as Supply which includes Goods as well as Services.

      05-12-2018 / 05:46:05 PM
      Reply
      • Except above, an E-Commerce Operator is also liable to charge GST from Customers for all the Supplies made through their Portal, on behalf of Suppliers registered on their Portal.

        Hence, Every E-Commerce Operator in India has mandated GST Registration for all the Merchants registered or being registered on their Portal.

        05-12-2018 / 05:51:23 PM
        Reply
    • Thank you !

      06-12-2018 / 05:09:05 AM
      Reply
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