GST in Case of Goods Earlier Reverse Charge was applicable in Case of Services only (in Service Tax) It was not applicable in case of Goods (There was no reverse charge concept in Vat) However, now in GST, it is applicable in Goods Also Example X Sold Goods to B of Rs 100000 Suppose GST Rate is 5%, X will sell goods to Y for Rs 100000 + GST 5% = 105000 Y will pay X Rs 105000 and X will pay 5000 to Government However, If X is Unregistered in GST, then X cannot charge GST on it Then Reverse Charge will also be applicable on it Y will pay X 100000 and deposit 5000 Directly to Government. When is Reverse Charge Applicable?
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