This notification has given relief to registered person who receive goods and services from unregistered person, because GST law provides that if any unregistered taxable person supply goods and services to register taxable person then GST shall be paid by registered taxable person under the ”reverse charge provisions”
Now Confusing point arises that if i got a tea from tea vendor for our staff shall i be liable to pay GST on behalf of tea vendor. Few questions similar to that one created most of confusion among us. so make it more simpler government has issued a notification to remove doubt of taxpayer.
GOVERNMENT OF INDIA MINISTRY OF FINANCE (Department of Revenue) Notification No.8/2017-Central Tax (Rate)
New Delhi,the 28th June, 2017
In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest hereby exempts intra-State supplies of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the central tax leviable thereon under sub-section (4) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017):
Provided that the said exemption shall not be applicable where the aggregate value of such supplies of goods or service or both received by a registered person from any or all the suppliers, who is or are not registered, exceeds Rs.5,000 in a day.
This notification shall come into force with effect from the 1st day of July, 2017.