Tax laws Solved paper Dec-2017 : CS executive |Part-2|

Описание: Reverse Charge Mechanism (RCM)

Vide notification no.38/2017-Central Tax (Rate) dated 13.10.2017, all categories of registered persons are exempted from the provisions of reverse charge under 9(4) of CGST / SGST (UTGST) Act, 2017 / section 5(4) of IGST Act, 2017, till 31.03.2018.

Once the above date is crossed the following will be in force-

Purchases up to Rs. 5,000 per day from unregistered suppliers will not attract GST. In other words, there is a reverse charge on buying from unregistered dealers if you are dealing with unregistered suppliers and making payments above Rs. 5,000.
Registered taxpayers will have to look into their expenses daily and analyze their P/L accounts to check whether any transactions/expenses will fall under RCM.
If the expenses are above Rs. 5,000 then they will be required to pay GST on these transactions under RCM.