Hello all,
could you please explain me, how GST is going to work for reverse charge. like we do in service tax.
As of now, Govt has not specified the services to be covered under GST. However, If a registered person purchases goods / avails services from unregistered person then he will be required to pay GST under reverse charge basis. Moreover, the requirement is such that the person paying under reverse charge is also required to issue invoice of good purchased / services availed. Such transactions are to be reported in the return and have to pay tax by 20th of the following month. and such taxes paid will be eligible for credit in the subsequent month. Thereby blocking the working capital to the extent of taxes paid under reverse charge mechanism.
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