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Reverse charge under gst

Jitendra (Internal Auditor) (220 Points)

29 September 2017

if someone purchases something from unregistered dealer of more than Rs 5000 but if he doesn't pay gst on this under reverse charge machenizm then what would happen???? please explain it with appropriate section.

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4 Replies

RAJA P M ("Do the Right Thing...!!!") (127911 Points)
Replied 29 September 2017

If you not show it in GST. Then you can't account in your books...
Also you ll be account it then it ll be interest & penalty occurred at the time of audit...
Also your auditor is disallowed the expenditure or charged the interest & penalty the amount and pay it to GST...

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Mukesh Kumar (Accounts Manager) (1466 Points)
Replied 29 September 2017

gst normal rate with interest 18%

Jitendra (Internal Auditor) (220 Points)
Replied 29 September 2017

plz provide me relevant section

Jitendra (Internal Auditor) (220 Points)
Replied 06 October 2017

@ Raja Sir, Earlier you said that auditor will disallow those expenses but if person is opting section 44ad of income tax then he doesn't need to keep all the accounts so in this case I think there is no need to raise self invoice in case of purchases from unregistered dealer.....what is your opinion???