How to differentiate Threshold limit with Reverse Charge Mechanism?
What is Threshold limit? How does Reverse Charge Mechanism work under GST regime? What are the difference between Threshold limit and Reverse Charge Mechanism?
Under GST system, the following information explains about Threshold limit and Reverse Charge Mechanism.
Threshold limit means limit which allows the person to do business without obtaining registration under GST. Unregistered recipients mean the person who receives taxable supplies without having valid registration under GST Laws.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.
The details about Threshold limit and Reverse Charge Mechanism with simple language from GST terms have been mentioned in this web blog separately. I suggest you to read these articles on Threshold limit and Reverse Charge Mechanism, so as to enable you to have a clear idea on these shipping terms.
For your immediate reference, we give below web links on Threshold limit and Reverse Charge Mechanism separately below. You may kindly read the below links to know more about Reverse Charge Mechanism and Threshold limit.
What is Threshold limit under GST
Reverse Charge Mechanism Unregistered recipients under GST
The above information easily explains about Reverse Charge Mechanism and Threshold limit.
I hope, you have satisfied with the difference between Threshold limit and Reverse Charge Mechanism explained above. Do you have different thought on difference between Reverse Charge Mechanism and Threshold limit?
Share below your thoughts about Threshold limit and Reverse Charge Mechanism
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