Unregistered Purchases of Goods Under GST

RCM 766 views 3 replies
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4 Points Joined July 2021

Dear Experts,

I have a question regarding Unregistered Purchases of Goods Under GST.

We sell wooden handicrafts that are made by small artisans. Generally, these artisans are not registered under GST. 

For the last 2 years, we have been purchasing goods from these unregistered suppliers without any GST Billing.

I want to ask:

(i) Do we have to show these unregistered purchases in GST returns? If so, then where and how to enter the details in GSTR-3B?

(ii) Is GST applicable on these purchases?

(iii) Are there any consequences we might face from the GST department? I am not sure if what I am doing is the right way or not.

Looking forward to your expert advice.

Thanks and Regards

Radon

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On 19 January 2023 at 19:10 Report
Replies (3)
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Finance Professional
9289 Points Joined October 2007

(i) Yes, unregistered purchases made from suppliers who are not registered under GST should be reported in your GST returns. 

(ii) Yes, GST is applicable on these purchases. 

(iii) Consequences for non-compliance with GST laws can include fines or penalties.

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On 20 January 2023 at 17:32
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2 Points Joined November 2017
If you are selling the goods which you have purchased then you have to pay gst on that goods, whether purchased from unregistered person
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On 21 January 2023 at 05:19
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4 Points Joined July 2021

Thanks for your reply.

In a normal scenario, the Supplier of Goods is responsible for collecting GST from the Recipient of Goods and paying it to the Government.

But in my case, Supplier is not registered under GST. Hence, it is impossible for him to collect and pay GST.

Kindly clarify whether my case falls under RCM.

 (i) Yes, unregistered purchases made from suppliers who are not registered under GST should be reported in your GST returns. 

(i) It should be reported in GSTR-3B, right. But in which table and cell?



 

 

 

 

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On 22 January 2023 at 15:46

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