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Question ID : 36886

Reverse Charge Mechanism

If Business entity is unregistered ( since turnover is less than Rs 20 lakhs and availing services of advocates, then will it be liable to take registration and pay tax for this single transaction  ? 

Posted by samirkumar gokulbhai kasvala on Dec 10, 2018

Filed Under GST

Answer ID : 76056

Yes, 20 lacs relief is under section 22. But notwithstanding 22, section 24 requires compulsory registration if RCM is attracted (when 'business entity' makes payment). And once registered (for RCM purposes), forward charge also attracts even if turnover still below 20 lacs.

Posted by CA. JATIN CHRISTOPHER A on Dec 11, 2018