Iam a milk vendor and engage is buying and selling of milk which is exempted in gst so didn’t register for gst number.. my turnover is 1.5 crore.. My question is that if i hire services such as man power and legal services from unregistered person for my firm which is rcm payable .. so do i have to register my firm under gst to pay rcm on such inward supply or in case of buying of capital goods from unregistered person .. So for payin rcm thats bcz i used inward supply from unregistered person i have to get registered under gstin.. but i only deal with exempted supply sale that is selling and buying of fresh milk.. 2- in above case if i hire a rent shop from unregistered person for my milk business do i have to pay rcm and get registered under gst? The conclusive question is that it is mandatory for a person to get registered dEaling in exempted supply under gst just to pay rcm for inward supply
Yes, it is mandatory to take registration if you are receiving any service covered under Section 9(3) on which RCM is applicable.
Legal Services and Manpower services (Received from non-corporate entities) are among the services covered u/s 9(3).
Further, please note that RCM u/s 9(4) is suspended and RCM is not applicable on purchase from unregistered vendors anymore. Therefore due to this clause, you need not take GST registration.
Trust this meets your understanding.
Thanks.
Than whats the meaning of a person doing busines in exempted supply say milk irrespective of turnover.. gstin is not mandatory for those dealing in exempted supply given on gst website.. So why iam have to register just bcz to pay rcm on 1-2 inward supply? So whats the use of the above clause that person dealing in exempted supply is free from gst registration.. bcz in every business one have inward supply even a single in case of capital goods which if purchase from unregistered dealer would make me liable to get registered under gst? Iam a milk vendor and my business is buying amd selling of milk but have to buy some or the other capital goods and services for my business which attracts rcm such as transportation and legal services.. so do i have to register under gst.. if yes then whats the use of being exemption given on milk?
Hi
1. Yes, you need to get registered compulsorily if you have a liability to pay GST on reverse charge basis.
2. In this case, no. Reverse charge on supply from unregistered persons has been suspended so far.
Hi,
1. Yes, you need to get GST registration to pay GST on reverse charge.
2. No GST is payable on URD purchases under RCM.
Hi,
- Yes you need to register mandatory if there is inward supply liable to RCM even though you are supplying exempt goods or unregistered.
- After obtaining GST, you need to report even exempt supply in GSTR-3B and GSTR-1. In GSTR-3B, you need to show inward supply on which RCM is paid.
Thanks
Suppose my turnover is below 20 lakh than also i have to register gstin to pay rcm on 1- legal services 2- man power 3- gta service Also returns filed by advocates accounts to legal services?
1. Yes, you need to take registration irrespective of the turnover.
2. Yes, returns filed will be covered under legal services, if done by advocate.
Legal services means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority.
Referring to Notification no 9- IGST (Rate) dated 28.6.17, there is an exemption for service provided by advocates to business entities with turnover less than 20 lacs. Hence, reverse charge not applicable.
Yes you need to obtain GST mandatory irrespective of the turnover limit.
It is advisable to pay GST on legal charges to avoid any dispute in the future. As return filing includes consultation also.
1. Yes, you need to take GST registration without any limit.
2. Yes, returns filed by advocates accounts to legal services.
Yes if you are having compulsory liability for GST under RCM then you need to register for it.
There is no compulsory RCM for buying from unregistered person.
Getting your return filed is covered under legal services.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hello,
1. Yes, you will have to get GST registration mandatorily since you are liable for tax as per RCM on inward supplies, even if you make the supply of only exempted goods.
2. RCM on inward supplies from the unregistered person has been rescinded. So no need to register in this case.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
Even if your turnover is below Rs. 20 Lacs, you need to register under GST if you are liable to tax as per RCM on inward supplies.
Yes, returns filed by advocates will be covered under legal services.