A business example
A business receives an inward-service invoice and its adviser identifies that the specific supply is covered by reverse charge.
Classify
Check the exact service and the applicable reverse-charge provision.
Account and pay
Determine the recipient's liability and the required payment treatment.
Review credit
Separately assess whether any resulting input tax credit is eligible.
What this shows
The supplier's registration status alone does not settle this scenario. Liability and credit are separate questions, and this example assumes coverage has first been established.
What it is often confused with
Buying from an unregistered supplier does not, by itself, establish that every purchase attracts reverse charge.
What to look at in your business
Record the supply category, parties, applicable notification and tax-payment evidence.
Context and further reading
CBIC: sectoral GST questions. This reference supports the terminology; use the linked guide for applicability and operative requirements.
Kosha.Services · Updated 2 October 2026