Registration Threshold Limit under Reverse Charge in GST

Last updated at Dec. 16, 2024 by

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 40 lacs (for goods) and 20 lacs(for services), then Compulsory Registration

(Limit is 20 lacs(for goods) and 10 lacs (for services) 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 40 lacs /20 lacs here

 

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.