Question

What will be the implications in case of receipt of supply from unregistered person?​

Answer 1

Answer:

. In case of receipt of supply from an unregistered person, the registered person who is receiving goods or services shall be liable to pay tax under reverse charge mechanism.

Answer 2

The unregistered person needs to pay the tax.

• As per Sec 9(4) of CGST Act the individual is liable to pay the tax
• The registered individual is required to pay tax in accordance to the reverse charge mechanism in this type of commodities exchange.
• According to the GST rules, every individual purchasing commodities must provide both a payment voucher and a tax invoice when the exchange is with an unregistered individual.