Reverse Charge- an onerous requirement despite 8/2017-CTR

I think, the exemption is for a registered person per day. It is not based on the vendor. Rs.5000 would include coffee, tea, lunch expense reimbursement, conveyance reimbursement, petty expenses incurred by staff going out for work and so on. Therefore, the illustration taken in the article seems to be inappropriate. Liability under RCM would crystallize only when the daily value of such goods and services exceeds Rs.5000. On the other days, when the expenses are below this limit, there can be no liability. So, it would seem that business enterprises have to change their practices and procedures to keep in step with GST law. Not a tall order for any sensible businessman.

Gururaj B N 04/07/2017