Is there any liability on ‘B’ in relation to the services provided by such persons?
The registered person ‘B’ receives small parts of the software code from those individuals which he integrates and supplies to customers as a package. These individuals have a small business of 5 to 10 lakh rupees, and hence are not registered in GST. Is there any liability on ‘B’ in relation to the services provided by such persons?
If supplies by unregistered suppliers, then the GST can be paid by the recipient, who is a registered person, Under Section 9 (4) of the CGST Act, 2017. Therefore, in this case ‘B’ is responsible for paying GST, on the services provided by these individuals. ‘B’ can claim the credit of this tax paid by them on a reverse charge.