Purchase From Unregistered Dealer

Avi Sharma
watch_later 3 years, 7 months ago

Can a registered dealer make interstate purchase from an unregistered dealer under GST reverse charge mechanism?

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1 Answer

Pulkit Sharma watch_later 3 years, 7 months ago

Yes you can make interstate purchase from unregistered person, but need to pay IGST under RCM. By the way, unregistered person need to obtain registration to make interstate outward supplies.

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    My supplier is based in Gujarat however we are based in Delhi.We have acquired registration but ur supplier will be applying for registration next week.But we have made few purchases from him in this week..So how should we treat this transaction i.e under rcm basis or can he issue invoice after a week once he gets his registration done? - Avi Sharma
    As per rules invoice should have been issued. Since you got it from unregistered person pay tax under RCM. - Pulkit Sharma
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