Reverse Levy on Supplies from Unregistered Persons in GST Regime
Reverse Levy on Supplies from Unregistered Persons under GST Regime. We welcome the Constitutional Amendment (GST) Bill passed by the Parliament.||Reverse Levy on Supplies from Unregistered Persons under GST Regime. We welcome the Constitutional Amendment (GST) Bill passed by the Parliament.||Reverse Levy on Supplies from Unregistered Persons under GST Regime. We welcome the Constitutional Amendment (GST) Bill passed by the Parliament.||Reverse Levy on Supplies from Unregistered Persons under GST Regime. We welcome the Constitutional Amendment (GST) Bill passed by the Parliament.||Reverse Levy on Supplies from Unregistered Persons under GST Regime. We welcome the Constitutional Amendment (GST) Bill passed by the Parliament.||Reverse Levy on Supplies from Unregistered Persons under GST Regime. We welcome the Constitutional Amendment (GST) Bill passed by the Parliament.

Reverse Levy on Supplies from Unregistered Persons under GST
Reverse levy – Exempt Self-Help Groups and Micro Enterprises
Section 9 sub-section (4) of the CGST, 2017
“S. 9 (4) The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.”Section 5 sub-section (4) of the IGST, 2017
“S. 5 (4) The integrated tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.” These sections do not provide for any exceptions so that any supply of goods or services from an unregistered dealer will be subject to levy of GST in the hands of a sourcing registered dealer. Even though there is rationale in keeping such provision in the Act but not much thought is given to the adverse impact of such provision on certain sections of the economySelf help employment groups (SHGs)
The Government of India acknowledges that creating self employment opportunities is one way of attacking poverty and solving the problems of unemployment. There are over 24 crore people below the poverty line in the country ( 2004 Statistics number). The Government of India promote Self Help Groups and other voluntary organizations who employ their aptitude and skill for the good of the rural women, disabled persons, difficult area groups like hilly, desert and sparsely populated areas, BPL groups, scheduled tribe and scheduled caste groups. SHG are formed under the Swarna Jayanti Swarojgar Yojana (SGSY) of the Government of India to provide sustainable income to the poorest of the poor people living in rural & urban areas of the country. Such self help groups from various parts of India come to urban towns to sell their goods.Advertisement