Scenario - An EPC (Engineering Procuring Construction) Business Company (GST Registered) applying for tender in Big Companies (GST Registered) to construct/install Electricity Pole on roads, Construction of Roads highways, etc. To execute the work, EPC Company is hiring small contractors / sub contractors who are GST registered & Unregistered both.
My query is - Is there any limitation or restriction on taking services from UNREGISTERED Contractors / Sub-contractors under GST???
Please provide me the reference of Act/Rules/Sections also.
30 July 2020
There is no such requirement/restriction except for builders constructing buildings.You can buy whole goods/services from unregistered vendors,if you want.However, RCM liability you will have to see for services under section 9(3) of CGST Act. RCM of goods u/s 9(4) will not be applicable in this case.