Reverse Charge Mechanism and Recovery by sale under GST terms

Posted on 11 June 2022 Category : GST terms difference

How to differentiate Recovery by sale with Reverse Charge Mechanism?

What is Recovery by sale of movable or immovable property? How does Reverse Charge Mechanism work under GST regime? What are the difference between Recovery by sale of movable or immovable property and Reverse Charge Mechanism?

Under Recovery by Sale, the proper officer shall prepare a list of movable and immovable property belonging to the defaulter, estimate their value as per the prevalent market price and issue an order of attachment or distraint and a notice for sale in FORM GST DRC- 16 prohibiting any transaction with regard to such movable and immovable property as may be required for the recovery of the amount due.

Section 9(4) of the CGST Act, 2017 mandates that tax on supply of taxable goods by an unregistered supplier to a registered person will be paid by the registered person under reverse charge mechanism. This provision, however, must be read in conjunction with section 2(105) read with section 7 of the CGST Act, 2017. Section 2 (105) defines supplier as a person supplying the goods or services. Section 7 provides that a supply is a transaction for a consideration by a person in the course or furtherance of business.

The details about Recovery by sale of movable or immovable property and Reverse Charge Mechanism with simple language from GST terms have been mentioned in this web blog separately. We suggest you to read these articles on Recovery by sale of movable or immovable property and Reverse Charge Mechanism, so as to enable you to have a clear idea on these GST terms.

For your immediate reference, we give below web links on Recovery by sale of movable or immovable property and Reverse Charge Mechanism separately below. You may kindly read the below links to know more about Reverse Charge Mechanism and Recovery by sale of movable or immovable property.

What is Recovery by sale of movable or immovable property under GST

Reverse Charge Mechanism Unregistered recipients under GST

The above information easily explains about Reverse Charge Mechanism and Recovery by sale of movable or immovable property.

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