Question

when locally made food products or industrial components or raw materials supplied by unregistered persons are purchased by registered persons ___
a. GST is applicable
b. GST is not applicable
c. reverse charge is applicable
d. not taxable​

Answer 1

The correct option is c. reverse charge is applicable

• The term GST stands for Goods and service tax.
• According to Section 9(4) of the act, the tax is only applicable to certain commodities while registered individuals buy from unregistered individuals.
• When registered people buy locally made food, factory parts, or raw materials supplied by unregistered people, reverse charge is applicable.