What happens if the receiver of goods and/or services is required to pay tax under Reverse Charge but is not a registered dealer?
All taxpayers required to pay tax under reverse charge have to register for GST and the threshold of Rs 20 Lakhs is not applicable to them.
Is Input Tax Credit allowed under Reverse Charge?
Tax paid on reverse charge basis will be available for input tax credit if such goods and/or services are used, or will be used, for business. The recipient (i.e., who pays reverse tax) can avail input tax credit.
What if an Input Service Distributor receives supplies liable to Reverse Charge?
An ISD cannot make purchases liable to Reverse Charge. If the ISD wants to procure such supplies and take the Reverse Charge paid as credit, the ISD should register as a Normal Taxpayer.
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