Question : Will the buyer of goods from unregistered person pay reverse tax?
Answer: A registered person receiving taxable goods or services from a supplier who is not registered, would
be liable to pay GST under reverse charge mechanism.
However, in terms of notification no. 8/2017-Central Tax (rate) dated 28th June, 2017, aggregate value of supplies
of goods and/or service received by a registered person from any or all the suppliers, who is or are not registered, upto five thousand rupees in a day is exempt from tax un- der reverse charge mechanism. This exemption will not
apply if the value exceeds Rs.5000/-.
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