Answer

1. F

   Facts

   Buying from an unregistered vendor is legal. You get no ITC on such purchases, and reverse charge applies only on specific notified goods or services. There is no fake invoice risk if no GST is charged.

2. P

   Provisions and law

   • Sec 9(4), CGST Act 2017Reverse charge on supplies from unregistered persons applies only to notified categories of registered recipients and supplies
   • Rule 46A and Rule 49, CGST Rules 2017Unregistered or composition suppliers do not issue tax invoices with GST
3. A

   Analysis

   If an unregistered vendor's bill shows GST, that is wrong; he cannot collect it, and you cannot claim it. Example: a local carpenter billing Rs 40,000 without GST is fine. A vendor with no GSTIN charging 18 percent is a red flag. Check whether your purchase falls under a notified reverse charge category, such as certain services, and pay RCM if it does.

4. C

   Conclusion

   1. 1Confirm the vendor has no GSTIN by asking and searching by PAN
   2. 2Do not pay any GST shown on an unregistered vendor's bill
   3. 3Check if the purchase is under notified reverse charge
   4. 4Raise a self-invoice and pay RCM if applicable

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.