GST

CGST exemption from reverse charge upto Rs 5000 per day

CGST exemption from reverse charge upto Rs 5000 per day under section 11 (1) 

[TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)

Notification No.8/2017-Central Tax (Rate)

New Delhi, the 28th June, 2017

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts intra-State supplies of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the central tax leviable thereon under sub-section (4) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017):

Provided that the said exemption shall not be applicable where the aggregate value of such supplies of goods or service or both received by a registered person from any or all the suppliers, who is or are not registered, exceeds five thousand rupees in a day.

2. This notification shall come into force with effect from the 1st day of July, 2017.

[F.No.354/117/2017-TRU]

(Mohit Tewari)
Under Secretary to the Government of India

Note: The Government has further postponed the implementation of Reverse Charge Mechanism till 30-09-2018 Rad Notification Click Here >>

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  • We has to pay GST on transport charges if single consignment is cross the limit of 750/-

    if we purchase from unregistered dealer of Rs 4500/- in a day & pay 1000/- as a transport charges

    can we pay the GST on full paid amount RS 4500 + 1000 = 5500/-

  • For e-g ,the unregistered vendor charges me 4000 which is exempted from reverse service charge since its lesser than 5000.But can the payment be made by cheque or we have to pay it only by cash.

  • sir
    if i am paying rent to unregister person which is only 4000 or paying twise in month
    which doesnt cross limit of 5000 then im liable for rcm ?

  • if rent paid rs 20000 p.m. ...whether RCM apply???? mean to say how rent limit will be calculated daily avg basis or monthly...if rent exceeds 5000 p.m. ..RCM apply???

  • Sir My Question is amount paid to local unregistered dealer for Rs. 3000/- for food expenses, tea etc. So i shall liable to pay GST . And also let me know what is exempt CGST or SGST?

    • No. if the total payment to unregistered dealers is with in Rs. 5000 on that day. If it is Rs 5001 you have to pay reverse charge Rs. 5001.

  • Sir,
    My Question is if i made Cash Expenses in a day more than 5000 from unregistered person for the business purpose.
    For e.g. 1) Clearing and Forwarding Rs.5000/-
    and 2) Miscellaneous Exp Rs.6000/-
    so my total Expenses is Rs.11000/-
    So We have to pay in RCM on Rs.6000 only
    or We have to pay of Rs.11000/-

    advise us

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