Kalyan Limited, a trader has aggre-gate turnover of outward supply up to 12th July, 2019 is ₹ 7,00,000. The company is under threshold limit, hence not registered under GST. Kalyan has taken sponsorship services from Mr. Rahul on 21 st July, 2019. Who is liable to pay GST on the amount of sponsorship services.
A. Kalyan limited under reverse charge mechanism
B. Mr. Rahul under forward charge mechanism
C. Both Kalyan and Rahul
D. It is exempt
Answer:A
Kalyan Limited, a trader has aggre-gate turnover of outward supply up to 12th July, 2019 is ₹ 7,00,000. The company is under threshold limit, hence not registered under GST. Kalyan has taken sponsorship services from Mr. Rahul on 21 st July, 2019. Who is liable to pay GST on the amount of sponsorship services.
A. Kalyan limited under reverse charge mechanism B. Mr. Rahul under forward charge mechanism C. Both Kalyan and Rahul D. It is exempt