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There is Compulsory Registration in GST In case of Reverse Charge

Buyer cannot say that his Invoice amount is less, so need to pay GST

In this case, he has to compulsorily get himself registered in GST and pay tax

Comparison of Normal Charge and Reverse Charge

NORMAL CHARGE

REVERSE CHARGE

Registration Limit

If Aggregate Turnover is greater than 20 lacs, then Compulsory Registration

(Limit is 10 lacs for North Eastern States)

 

Aggregate turnover includes all types of Sales

like

  1. Taxable Sales
  2. Exempt Sales
  3. Export Sales
  4. Interstate Sales
  5. Sales by Agent of Principal

(Amount of taxes not to be included)

 

However Compulsory Registration Required for MAKING

  1. Interstate Sales
  2. Supplying goods on behalf of Other Persons
  3. Casual Taxable Person
  4. Non-resident taxable persons
  5. If liable to deduct TDS in GST
  6. If liable to deduct TCS in GST
  7. Input Service Distributor
  8. 8.Making Sale on Behalf of other person (Franchise/Agent)
  9. Reverse Charge
  10. E-Commerce Companies
  11. Online Database Service Provider from Outside India into India
  12. Others as may be Notified

Reverse Charge

There is Compulsory Registration

No Limit of 20 lacs here

 

  1. GST - Goods and Services Tax, India
  2. GST Computation & Accounting
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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