GST Reverse Charge - Question Answers with Chartered Accountant
GST Reverse Charge - Question Answers with Chartered Accountant. “reverse charge” means the liability to pay tax by the recipient of supply of goods or services ||GST Reverse Charge - Question Answers with Chartered Accountant. “reverse charge” means the liability to pay tax by the recipient of supply of goods or services ||GST Reverse Charge - Question Answers with Chartered Accountant. “reverse charge” means the liability to pay tax by the recipient of supply of goods or services ||GST Reverse Charge - Question Answers with Chartered Accountant. “reverse charge” means the liability to pay tax by the recipient of supply of goods or services ||GST Reverse Charge - Question Answers with Chartered Accountant. “reverse charge” means the liability to pay tax by the recipient of supply of goods or services

GST Reverse Charge
Mr A | Hello sir, Good day to you. How are you? |
CA | I am doing fine Mr. A, how about you? |
Mr A | Doing good, Sir I have heard that in GST if we deal with unregistered dealer then we have to pay tax on behalf of them? |
CA | Hi Mr. A, Be Calm. Yes, what you are saying is true. This concept is called “Reverse Charge”. Previously it had a very little scope in Service Tax but in GST it has very wider scope and if a registered person deals with unregistered supplier then the registered person has to raise the invoice and pay the tax on it. I understand this is huge compliance burden but this is what the current design in GST
|
Mr A | Oh, so that tax is additional burden on the registered person? |
CA | From compliance point of view it is really an additional task but the registered person can claim the tax paid as input tax credit in the subsequent month. So from cost point of view, registered person will not be affected. |
Mr A | Ok, so what will be the time of supply considered under reverse charge transactions? |
CA | Good Question. The time of supply of goods under reverse charge will be earlier of the following:
|
Mr A | Ok, so seriously these provisions are going to make transactions with unregistered persons a thing of past? |
CA | Yes Mr A. Purchase from unregistered person can prove costly and will also increase compliance burden as every time registered person has to take care of such transaction. Definitely people will deal more with registered players in GST regime and hence the number of registered persons will increase under GST. But this will really affect drastically a large number of small traders or service providers. |
Advertisement