Kaushal Agrawal

Section 9(4) shall force every service provider who is providing services to business entity to get itself registered even if their turnover do not exceeds Rs. 20 Lakhs. Chartered Accountant, company secretaries and cost accountant will need immediate registration under GST on the first day of start of practice. Even supplier of goods shall come under this section purview. Any registered person receiving any goods or services or both from an unregistered person is required to pay GST on reverse charge basis. Although they are eligible for credit. But the procedure formalities are there which need to be complied with.

Section 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.

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7 responses to “Most dangerous section of GST”

  1. Neyaz Ahmed Rahi says:

    If a registered person purchase goods from unregistered person GST paid by registered person then that goods sell another registered person with GST both GST pay to department or not please suggest me?

  2. Akhilesh says:

    An unregistered person purchases goods from an registered person after paying the GST. Since he is unregistered, he is not eligible to take ITC. So, the amount of GST becomes his cost. When he supplies to a registered person, at a rate inclusive of GST plus margin, the Tax has to be paid by the recipient on RCM basis and it has to be paid in Cash on his purchase price which includes the Tax element under GST.
    Is it not a case of double taxation ? please clarify.

  3. kaushikkumar says:

    Earlier i have to make 57f (4 ) for more than 100 mtr distance. Now what is the rule in GST.
    Please advice.

  4. NILAM SHAH says:

    Dear Sir,

    I would like to happy for interactive with your two days lecture at AMA.

    My fact and query is …..

    1. I have manufacturing of unit. since Last one year or more we not paid the Central Excise duty and last nine month we not paid the Service Tax. reason only that economical condition is very poor for financial problem. so I am as a defaulter. Our range officers know very well. The dep’t has not any issue a SCN. Only letter and Annex. A and B issue for reminder.

    Now GST come from 1st July 2017. So any impact to our unit with come GST? Dept’s says that if you have not paid the all duty, you are not able to run the GST as well as factory because of ” as a defaulter”. Not to any credit taken in GST regime

    we will able to all GST benefit. Dep’t says that you have not given any benefit in GST.

    we are ready to pay in installment but take time but now GST come within short time so we will the pay the all outstanding in future?

    Pl. give your valuable suggestion.

    2. Also Now in GST regime we will regularly pay the tax and all things will regular in GST. But only question any impact in GST due to prev. issue as above?

    Pl. give your valuable suggestion.

  5. SANJAY BABAR says:

    Dear Sir/Madam,
    If customer reject and return exciseable duty paid goods to factory maufacture after 1st July 2017?

    • T.R. PRASAD says:

      Yes. The said goods (if purchased not later than 6 months prior to appointed day) can be returned to the supplier, within 6 months after the appointed day under GST regime, without payment tax under GST.

  6. MANAM SESHADRIVASA says:

    NOT ONLY CHARTERED ACCOUNTS, COST ACCOUNTANTS AND COMPANY SCRETARIES. ADVOCATES AND ENGINEERS ARE ALSO EXTEND THEIR SERVICES TO BANKS ETC. SO THESE PEOPLE ARE ALSO COME UNDER THIS NET. PLASE CHECK THE MATTER.

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