Now we all are familiar with the substitute of VAT and that is GST. Because this is the only way to pay tax to government on the sale of goods or services or both. But things are not ends here. there are lots of things which we need to know about GST and one of them is REVERSE CHARGE , yes this is one the important topic of GST which should be necessary to know among all the registered or unregistered supplier .
Government Normally happens that the supplier of service or goods who are registered in GST need to raise bill at the time of sale and the recipient need to pay the tax and that tax should be pay to the government by that supplier and this way to pay tax is known as forward charge. Let’s try to understand the forward charge on GST by an example.
But what about those who are not registered in GST .so government has made the another rule for them as well and that is known as reverse charge , but reverse charge system was not made just for the unregistered suppliers .
WHO ARE APPLICALE FOR THE REVERSE CHARGE
Now as we know that reverse charges were made for couple of things that’s why now we are going to have a look on all the cases for which reverse charge has made.
- E-commerce operator: if any person who is providing online services then only that person are liable to pay the GST to government.
For example, if ola cars are providing their services to the consumers then in that case supplies have to pay GST to the government instead of consumer of the services .
- Unregistered to registered dealer: if any business men are not registered under GST and selling something to the registered dealer then tax would be pay to government by the registered dealer instead of the unregistered.
- Specified goods and services by government: there are few goods and services which are specified by the central board of indirect taxes and customs to apply only reverse charge. These are the classified goods and services on reverse charge are applicable.
Goods: cashew nutsnot shelled or peeled. , tendu leaves , silk yarn , raw cotton , supply of lottery ,used vehicles, seized and confiscated good , waste and scrap .
Services: supply of service by GTA for transport the goods by road, supply of services by any advocate or firm of advocate, any arbitral tribunal
Time of supply in the case of reverse charge
In the case of supply of goods the time of supply should be early than the Date of receipt of goods,
The date of payment and the date should be 30day after from the date of issue of invoice by the supplier.
In the case of service the time of supply should be early than the date of payment and the date should be 60days after from the date of issue of invoice by the supplier.