What is the Reverse Charge Mechanism(RCM) under GST?
The Reverse Charge Mechanism (RCM) is the process of GST Payment by the receiver instead of the supplier. In this case, the liability of tax payment is transferred to the recipient/receiver instead of the supplier.
The Reverse Charge Mechanism is applicable in the case of :
- Imports
- Purchase from an unregistered dealer
- Supply of notified goods and services
This reverses the scenario as the person who is receiving the goods and services needs to pay the taxes. If the receiver is purchasing goods from unregistered providers, there needs to be a GST paid on their behalf. A payment voucher needs to be issued from the supplier to the recipient. The recipient must be a registered person as per Section 2(94) of the CGST Act,2017.
As per section 2(98) of CGST Act 2017, “Reverse-Charge” means the liability to pay tax by the recipient of the supply of goods or services or both instead of the supplier of such goods or services or both
- Under sub-section (3) or sub-section (4) of section 9, or
- Under sub-section (3) or subsection (4) of section 5 of the Integrated Goods and Services Tax Act
Need GST Billing Software for RCM Dealers
Current Situation in Reverse Charge Mechanism (RCM)
In the present scenario, the reverse charge mechanism is applicable in service tax for services like Insurance Agent, Manpower Supply, Goods Transport Agency, etc. Unlike Service Tax, there is no concept of partial reverse charge. The recipient has to pay 100% tax on the supply.
In the earlier government scenario, it was hard to collect service tax from the numerous unorganized sectors just similar to goods transportation. The effort has been made to place the services as per the existing regime and Compliances and tax collections will, therefore, be increased through the reverse charge mechanism. Currently, there is no reverse charge mechanism on the What is Mixed and Composite Supply Under GST? the reverse charge may be applicable for both goods and services.
RCM Provisions Under GSTR Forms – GSTR 1 – GSTR 2
This system is being carried forward from the VAT regime. In case the supplier is registered, but the goods or services come under reverse charge mechanism, the input tax credit cannot be claimed by the supplier as the tax is not credited by him but the receiver is paying the taxes.
In the case of importers of goods, taxes need to be paid under the reverse charge mechanism to the Government on the import. This is in addition to the import duties.
The details of the charges pertaining to the inward supply of goods or services are to be mentioned in GSTR 1. The details of inward supply are stated in the form GSTR 2.
A person who is liable to pay tax under reverse charge mechanism needs to be registered under GST irrespective of the turnover.
The goods/service supplier gets the input tax credit that is paid under the reverse charge. The only condition is that the input tax credit is used only for the furtherance of business.
The list of services to be included under the reverse charge mechanism are:
- Goods Transport Agency
- Recovery Agent
- Director of a company or body corporate
- An individual advocate or firm of advocates.
- An insurance agent
The Scenario Where Reverse Charge Will Be Applicable under GST
Supply by Unregistered Dealer
In case of an unregistered person is selling goods or providing any services to the registered person, then the liability to pay tax shifts on the registered person i.e. the recipient of goods/services, where such supply is of taxable supplies. No reverse charge mechanism in case of exempted supplies.
The tax will be paid by the registered dealer and all the provisions of the act will be applicable to him as if he is the supplier of the goods or services The concept behind this is to prevent tax evasion since it would be almost impossible to collect tax from the unregistered dealer. It would increase tax compliance and promotes transparency. Input credit will be allowed to the registered dealer of the tax paid by him under the reverse charge mechanism.
Recommended: What is Mixed and Composite Supply Under GST?
This extra compliance under the Act will force all the registered persons to purchase goods only from the registered dealers and this is what the new regime aims at.
Under RCM, Who is Responsible for Paying GST?
RCM requires that the recipient pay GST on goods/services. Nonetheless, in order to comply with GST law, the supplier of goods is required to indicate whether RCM tax is due on the invoice.
RCM GST payments should be made keeping the following points in mind:
- ITC on RCM tax amounts can only be claimed by recipients of goods or services if they are used to conduct business or further that business.
- If a composition dealer discharges liability under RCM, he should pay tax at the normal rates, not the composition rates. Additionally, they are not eligible to claim GST credit.
- RCM tax payables or charges can be subject to GST compensation cess.
For Services Provided by E-commerce Operator
In the case of services provided by e-commerce operators, the liability to pay tax lies on the recipient of services. If the assessee has no physical presence in the taxable area, then the representative of such an e-commerce operator will be liable to pay tax. If there is no representative, then the assessee has to appoint one who will be liable to pay GST.
For Services
CBEC has notified a list of services on which the reverse charge mechanism will be applicable under GST
| S. No. | Provider | Recipient |
|---|---|---|
| 1 | Goods transport agency | Casual Taxable person, body corporate, partnership firm, any society, factory, any person registered under CGST, SGST, IGST Act |
| 2 | Recovery Agent | Banking Company, NBFC or any financial institution |
| 3 | A director of a company or a body corporate | A company or a body corporate |
| 4 | An individual advocate or firm of advocates, An arbitral tribunal | Any business entity |
| 5 | An insurance agent | Any person carrying on insurance business |
| More: Illustrative list on which the reverse charge mechanism is applicable for services |
Supply of Goods Under RCM
| S.No | Description of Supply of goods | Supplier of Goods | Recipient of Goods |
|---|---|---|---|
| 1. | Cashew nuts, not shelled or peeled | Agriculturist | Any registered person |
| 2. | Silk yarn | Any person who manufactures silk yarn from raw silk or silk worm cocoons for supply of silk yarn | Any registered person |
| 3. | Raw cotton | Agriculturist | Any registered person |
| 4. | Used vehicles, seized and confiscated goods, old and used goods, waste and scrap | Central Government, State Government, Union territory or a local authority | Any registered person |
Supply of Services Under RCM
| S. No | Description of Supply of Service | Supplier of Goods | Recipient of Service |
|---|---|---|---|
| 1. | Any service supplied by any person who is located in a non-taxable territory to any person other than non-taxable online recipient | Any person located in a non-taxable territory | Any person located in the taxable territory other than non-taxable online recipient. |
| 2. | GTA Services | Goods Transport Agency (GTA) who has not paid integrated tax at the rate of 12% | Any factory, society, cooperative society, registered person, body corporate, partnership firm, casual taxable person; located in the taxable territory |
| 3. | Legal Services by advocate | An individual advocate including a senior advocate or firm of advocates | Any business entity located in the taxable territory |
| 4. | Services supplied by an arbitral tribunal to a business entity | An arbitral tribunal | Any business entity located in the taxable territory |
| 5. | Services provided by way of sponsorship to any body corporate or partnership firm | Any person | Any body corporate or partnership firm located in the taxable territory |
| 6. | Services supplied by the Central Government, State Government, Union territory or local authority to a business entity excluding, – (1) renting of immovable property, and (2) services specified below- (i) services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Central Government, State Government or Union territory or local authority; (ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; (iii) transport of goods or passengers. | Central Government, State Government, Union territory or local authority | Any business entity located in the taxable territory |
| 7. | Services supplied by a director of a company or a body corporate to the said company or the body corporate | A director of a company or a body corporate | The company or a body corporate located in the taxable territory |
| 8. | Services supplied by an insurance agent to any person carrying on insurance business | An insurance agent | Any person carrying on insurance business, located in the taxable territory |
| 9. | Services supplied by a recovery agent to a banking company or a financial institution or a non-banking financial company | A recovery agent | A banking company or a financial institution or a nonbanking financial company, located in the taxable territory |
| 10. | Services supplied by a person located in nontaxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India | A person located in non-taxable territory | Importer, as defined in clause (26) of section 2 of the Customs Act, 1962(52 of 1962), located in the taxable territory |
| 11. | Supply of services by an author, music composer, photographer, artist or the like by way of transfer or permitting the use or enjoyment of a copyright covered under section 13(1)(a) of the Copyright Act, 1957 relating to original literary, dramatic, musical or artistic works to a publisher, music company, producer or the like | Author or music composer, photograph her, artist, or the like | Publisher, music company, producer or the like, located in the taxable territory |
| 12. | Supply of services by the members of Overseeing Committee to Reserve Bank of India | Members of Overseeing Committee constituted by the Reserve Bank of India | Reserve Bank of India. |
Points to be noted:
No partial reverse charge will be applicable under GST. 100% tax will be paid by the recipient if the reverse charge mechanism applies.
- In the case of B2B import of other services, the tax shall be payable by the recipient of services
- In the case of B2B import of goods, the tax shall be payable by the recipient of goods
Liability of Registration Under RCM (Reverse Charge Mechanism)
Under Reverse Charge Mechanism who is liable to register in the new tax regime?
- A person who pays taxes under reverse charge is required to register under GST irrespective of the threshold and the annual threshold Limit is 20 lakhs (10 lakhs in the case of Hill states and North Eastern State)
Note: In the GST council meeting, states were given liberty to imposed double threshold limit for registration i.e. 40 lakh up from the earlier INR 20 lakh.
Time of Supply
Under GST, time of supply means a particular point in time when the goods or services are rendered or supplied. It allows us to find out the tax rate, value and due dates for filing returns. Under Reverse Charge Mechanism, the receiver is entitled to pay GST. However, the time of supply for supplying of goods and services under reverse charge is varying from the supplies which are under forwarding charge.
How to Find Out Time of Supply under Reverse Charge Mechanism (RCM)?
In the case of Goods: Time of supply in case of supplying goods when tax payable under Reverse Charge, whichever is earliest from the following dates:-
- the date of the receipt of goods;
- the date of payment as entered in the books of account of the recipient;
- the date on which the payment is debited in his bank account, whichever is earlier;
- the date immediately following thirty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier
Note: However, if it is not possible to find out the time of supply in mentioned above cases than the time of supply will be considered the date of entry in the books of account of the recipient of the supply.
Let us understand by an example given below:-
- Date of Payment – 18th June 2023
- Date of Invoice – 1st July 2023
- Date of Entry in books by the recipient – 19th June 2023
In this case, the time of supply will be 18th June 2023
If the supplier is located outside India, then the time of supply shall be the earliest of: ‘When the amount is paid i.e. the date of payment’
OR
‘When the recipient records the payment in his books of account’.
In the case of services: Time of supply in case of supplying services when taxes payable under reverse charge mechanism, whichever is earliest from the following dates:-
- The date of payment; or
- The date immediately following after sixty days from the date of issue of the invoice by the supplier; whichever is earlier
However, if it is not possible to find out the time of supply in the aforementioned cases, the time of supply will be considered the date of entry in the books of account of the recipient of the supply.
Let us understand by an example given below:-
- Date of Payment – 18th August 2023
- Date of Invoice – 1st September 2023
- Date of Entry in books by the recipient – 19th August 2023
Note: In this case, the time of supply will be 18th August 2017, Due to some reasons if the time of supply can’t be ascertained under 1 or 2 head, in this case, it will be 19th August i.e., date of entry in books by the recipient.
There are two types of reverse charge scenarios mentioned in the law. First one is dependent on the nature of supply and nature of supplier. This is covered under section 9 (3) of CGST/ SGST (UTGST) Act and section 5 (3) of the IGST Act. Second one taxable supply made by the unregistered person to a registered person covered under section 9 (4) of the CGST/SGST (UTGST) Act and section 5 (4) of the IGST Act.
The Manner of Payment of GST under the Reverse Charge Mechanism
As per section 49(4) of CGST Act’2017, ITC can be used for payment of output tax only. Therefore tax under reverse charge can be paid through cash only without availing the benefit of ITC. The supplier must mention in his tax invoice whether the tax is payable on reverse charge.
Input Tax Credit:
The service recipient can avail Input Tax credit on the Tax amount that is paid under reverse charge on goods and services. The only condition is that the goods and services are used or will be used for business or furtherance of business.
If the composite dealer falls under reverse charge mechanism then the dealer is ineligible to claim any credit of tax paid. The tax will be paid at the normal applicable rates and not at the composition rates.
Registration Requirement under Reverse Charge Mechanism (RCM):
As per Section 24 of CGST Act 2017, A person paying tax under the reverse charge mechanism has to compulsorily get registered even if the turnover is below the threshold limit.
Applicability of GST Compensation Cess:
GST Compensation Cess will be applicable on tax paid under reverse charge mechanism also. The purpose is to compensate States for loss of revenue on the implementation of GST. This will be applicable for 5 years from the date GST gets implemented.
Important Points to be Taken Care Under RCM :
- Goods and services notified under section 9(3) or section 9(4) must have person registered under GST.
- Under the reverse charge mechanism, the GST applicable must be submitted to the government on every 20th of next month
- The input tax credit will be available for all the RCM goods and services used for the furtherance of business according to the GST paid. And the service acquiring individual, who is also paying reverse charge can take the benefits of an input tax credit.
- There will be no auto-population of details of the GST paid under the RCM in GSTR 2, but it will be subjected to the manual furnishing of details.
- Wherever the RCM is applicable the invoice must be arranged by the recipient on itself while the invoices along with the consolidated purchases should be issued on a daily basis. on all the GST applicable who are under section 31(3).
- Payment voucher must be issued by the recipient at that during the time period of supplier payment.
- The ITC is not available for the reverse charge payment to the authority.
- The composition scheme registered individuals also come under the reverse charge, well there will be no credit of RCM availed.
- The reverse charge mechanism is applicable to payments made in advance also.
Note: If in case, a dealer is unregistered under GST, then he is not allowed to deal in any interstate transactions. For any reverse charge mechanism to applicable, there must be only intra-state transactions.
Conclusion: With the biggest tax reform ready to be implemented, the Reverse charge mechanism is not a new concept as we are already dealing with this in the service tax. But imposing a 100% reverse charge is definitely a big change. There are both pros and cons of this reverse charge mechanism but then no accurate conclusion can be drawn currently as to how society will be impacted by its imposition. On one hand, it will definitely be burdensome for the small supply receivers, but on the other hand, it will increase tax compliance for the country as a whole and would increase transparency.
Sir,
I have been awarded a contract for hiring of vehicle. the contract has been awarded in RCM mode and the GST is being submitted by receiving agency. My GST number is showing suo moto cancelled on the official site as i have not filled the returns. My question is can the receiver withheld my monthly bill claimed?
which book is best to get complete understanding of gst
Hi sir,
I am declared inward supplies with reverse charge in gstr-3b for the f.y. 2022-23 and tax also paid in cash. but not avalied in itc table under inward supplies with reverse charge form unregistered person during the f.y.2022-23. can i claim that RCM ITC in current f.y.2023-24 gstr -3b. and then that itc where can i show in gstr-9 in itc related tables.
Yes you can claim the same in Next FY and show the same in GSTR 9 under Table 8C
can we claim the ITC of Bajaj Finance/ Banks or Need to pay the RCM…..?
sir, need clarification on below:
invoice received in INR (indian Party)
Date of Invoice – 01-06-2023
Date of Entry booked in System – 15-08-2023
what will be the time of supply and whether interest will be charged or not .
Time of supply is Actual date of invoice is 01/06/2023, Hence interest will be charged for late reporting
How I can get list of notifications issued under sub-section (3) & (4) of section 9 of the Central Goods and Services Tax Act, 2017.
You can find the same on http://www.cbic.gov.in
Sir,
Is RCM is applicable for SAC code 995426 (General Construction services of Power Plants and its related infrastructure)? Please guide. Thank you
From which date appicable on RCM ON FREIGHT
“Please consult GST practitioner”
Can Good Transport Agency get registration ( On Same PAN NO)in one state on reverse charge basis and in another state on Forward Charge Mechanism.
Please Guide us
“Please consult GST practitioner for the same”
Dear Sir
Our company is export garment and we are doing export under without payment of tax. We are claiming refund on ITC as per rules. We are also paying RCM on transport charges to unregistered person. So that RCM amount can we consider for refund, please advise.
Regards
Rajendra More
Yes
Due to some mistake I miss to paid the reverse charges amount for the month of Feb. 23 gstr 3B return (it was not auto-populated because I filed GST before 14th March 23)
please help me with how I can pay in the month of March.23 gstr return.
You can show the amount in GSTR 3B under the RCM column and after submitting you need to show the same in the previous tax liability breakup report too, this will also create interest on that RCM purchase amount in the later month
Sir
We are registered transport firm When we issue invoice to a another registered Firm then RCM is applicable ??
Thanks and regards
One question is in this case who pay tax in RCM
Supplier or recipient??
Both are GTA and registered
The person who receives the service
If you are a GTA service provider then only you can raise the RCM invoice
Dear Sir,
some confusion in RCM, I am a registered dealer and make sales to registered dealers as F.O.R basis and hire un-register transporter for the supply of goods and make transport charges to the transporter by me. can its payment be liable under RCM?
Till when can we claim the rcm input paid for the fy 21-22?
Yes, 234A is liable to be paid till you file your Return. If you have filed your Return in March 2022 then Interest u/s 234A will be charged till march 2022 even if you have paid your tax in December 2021.
As per NOTIFICATION No. 22/2022–Central Tax, the Last Date to Claim ITC for FY 21-22 is 30th November 2022
Hello Sir,
I am a GST Registered Trader of Scrap. We Purchase Paper, Plastic, and Cardboard from UNregistered small vendors and sell that scrap to the registered persons.
My question is whether I have to pay Tax on reverse Charge Although I am paying total tax on outward supplies
according to the provision only notified goods or services are mandatory to show purchase under reverse charge
and buying scrap from an unregistered person is not listed there.
so is it mandatory to show purchases of unregistered dealers in the GST portal?
“As per Sec 9(4) of CGST Act, A registered person shall pay tax on receiving goods or services or both from an unregistered person, if the aggregate value of supplies of goods or services or both exceeds Rs.5000/-“
I am GST registered. The landlord is not GST registered.
I have to Pay the Government 18% tax on the rent via RCM charges.
can you please let me know how this payment can be made in the GST portal as there is provision for RCM only for GST registered persons.
You need to show it under Inward supplies under RCM in GSTR 3B
according to the provision only notified goods or services are mandatory to show purchase under reverse charge and buying scrap from an unregistered person is not listed there.
Is it compulsory to pay RCM on Scrap purchase from unregistered person , If yes please provided related provisions under GST Law.
As per section 9(4) of CGST act 2017 a registered recipient is liable to pay tax on all purchases of goods & services or both from an unregistered person under GST
Hello Sir,
We are registered under GST ACT & for supplying goods to a registered Company we are taking help of Unregistered GTA.Will it attract RCM as on 18.01.2023
Regards
Yes
If RCM is applicable, is NRI required to get GST registration?
If he wants to claim ITC then he can
Legal Services by a Law Firm are covered by RCM. However, when legal services are provided to an exempt entity (eg., entity running a Clinic/Hospital), which has therefore not obtained a registration under GST, who will remit the GST?
Since legal service is received by an unregistered entity then-No Question of GST arises
I am a GST-registered individual in West Bengal who wants to rent out my property located in West Bengal to a GST-registered company located in Uttar Pradesh. Is the said company of UP liable to pay GST @18% under RCM? If yes, in which category GST will be paid by the company – CGST/SGST or IGST?
Should I issue a Tax Invoice to that company with an 18% GST amount or the company will prepare a self-made Invoice under CGST/SGST or IGST? Please advise.
No, the said company is not liable to pay GST under RCM since you are itself a registered person and IGST would be applicable POS of property is different from Registered company address
Can an individual register himself for GST payment under RCM? I don’t have any business or firm registered on my name but need GST registration to pay GST to govt on the purchase of auctioned Car from the MSTC site
Please advise how can I register for GST being an individual.
No
Dear Sir,
Our Company is Registered under GST. We are taking CSR funds from PSU and submitting the Invoices as per GST. But one Gst registered PSU took an invoice from us under RCM and pay the amount without GST. Can we takes GST input on inward supplies taken for providing services to that PSU. If yes kindly give the link of notification etc.
Thanks
Please read the list of services covered under RCM, there mentioned the same
Sir,
As a registered travel agent I want to clear all doubts regarding tax invoice, Is there any FAQ list where I can clear all doubts
Yes, you can check the same on E-Invoice portal FAQs
13.06.2022
Sir.,
We, the company GST registered and one of our Printer service vendors is also a GST registered concern.
Our vendor provides bills without GST for Rs.900/-related to Printertoner refilling and spares servicing and for that, our vendor replies that they charge GST only for the Sale of computers and printers only and not for spares service and refilling jobs.
Is the vendor correct or can we ask the vendor to provide the bill with GST for Printertoner refilling and spares servicing also?
Please clarify our doubt.
Thanks and regards
K.Rengarajan
The vendor is not correct, you can ask him to provide the bill with GST
Sir.
What is the current GST rate% for SAC codeno.998363-Sale of advertising space in print media (except on commission) and till date we are charging 5%.
Is there any change in the above GST rate% for SAC codeno.998363
Please clarify and help us.
Thanks and regards
K.Rengarajan
Still, it is 5 % no such changes in GST rate
16.06.2022
Sir
Thanks for your kind reply
Thanks and regards
K.Rengarajan
Sir,
1. Our company is a GST registered one and our Vendor is also a registered vendor who is dealing with printer service, spares replacement,toner refilling and selling computers and printers
2. vendor a registered one provides bills without GST for toner refill and parts services and for provides bills GST only for selling computers and printers.
3.We insist our vendor provide bills with GST for toner refill and parts services also which is below Rs.5000/- but they reply that they only provide bills with GST only in the case of selling computers and printers,
4. Please clarify whether the vendor’s reply is correct or not.
Thanks and regards
K.Rengarajan
Already replied
I want reply
Dear Sir
I am a transporter and registered under GST I am billing to some transporter is this will attract under RCM on Nil Rated supply pls confirm as some transporter saying why you filed under RCM this is exempted supply.
“Please consult the same with the GST practitioner”
04.06.2022
Sir.,
1. Please clarify whether the reverse charges are applicable for purchases up to Rs.5000/- per day in the current year 2022 on vendor bills since a vendor provided a bill dt.04.06.2022 for Rs.550/- without GST related to printer spare and service and our company is a GST registered one.
2. Can we pay the bill amount of Rs.550/- without GST to the vendor or make the payment bill with GST with reverse charge.ie., Rs.550+18% GST
Thanks and regards
K.Rengarajan
No as per Section 9(4), if the aggregate value of goods or supplies received from URP is not exceeded Rs.5000 then RCM is not Applicable
THANKS FOR YOUR KIND REPLY
THANKS AND REGARDS
K.RENGARAJAN
We are govt entity registered in GST as a Tax deductor only what if we procure services and goods from URD. IS there any tax liability arising to us under an RCM basis ???
Yes, RCM provisions will be applicable.
Being the recipient of services /goods on which tax under the reverse charge mechanism is applicable, you are liable to be registered under GST also, in addition to registration as a tax deductor.
also, consult from your GST Advisor
“TDS under GST is not applicable when the payment is made under Reverse Charge Mechanism (RCM) by the recipient of service”
We have carried out electrical & painting works at our warehouse from a Unregistered dealer. Are we required to apply RCM, if yes @ what rate. Also are we required to raise RCM invoice on our Company itself or it is okay if we raise in the name of Unregistered dealer.
RCM invoice can be raised in the name of an Unregistered dealer
Good Idea to put a dark mode option ball for the eye protection of the website visitor…
highly appreciated keep it up.
Sir, Good Article on RCM under GST. My Submission is RCM is not applicable for imports.
Tax levied on imports under Sec 5 of IGST but not under RCM provisions. Thank you. Raghavendra Rao SVS. Advocate. Nellore. AP.
Sir, we have taken on hire from an individual, a vehicle (bulker) specifically made to carry dry fly ash. Monthly rent is being paid of ₹60,000. The said individual is unregd and not the vehicle owner. He does not issue consignment note as the usage of bulker is for any number of trips in a month. Is this fall under the ambit of RCM in GTA?
No
Is RCM applicable on goods purchased from URD Supplier?
If not applicable then when then provision had been omitted???
Yes
We are registered under composition scheme and mostly transacts with Unregistered suppliers. If we consider all such transactions for RCM liability then it will be a burden for us as there is no ITC available for us. Do we need to bear this burden even though the fault is from the supplier’s end?
You need to consider it under URD purchase not under RCM, for more detail kindly contact to GST practitioner
Sir,
RCM paid for taking service from URD , same itc not showing in GSTR-2B as URD not filing GSTR1 , how do I claim RCM I paid?
Will I get RCM input only if it is in GSTR-2B?
Please reply.
No, In case Your ITC is related to RCM URD you can claim the same under the heading “Inward supplies liable to Reverse charge”
Dear Sir
I have purchased taxable goods from uunregisted supplier
I have entered Tax amount in Table 3.1(d) of GSTR 3B, but I cant enter the same amount in Table 4 (3) because it is not autopopulated in 4A(3). The portal warning over claiming the ITC, so I tried next month also but same issue remains. please advise we can ignore the warning.
Yes, you can ignore the same
If Transporter is registered person but he will us RCM bill then what scenario we adopt
In the case of GTA (Goods Transport Agency), RCM is applicable
I have registered my company under GST. I can’t seem to find my RCM number.
How can I locate the same.
Thanks in Advance!
“Please elaborate the Question properly”
Hi,
We are exporting goods under LUT.
Do we need to pay RCM on freight invoice (Sea/ Air)?
Ravi Patel
No
is RCM applicable to a works contractor for hiring of vehicles for goods transport and machineries from unregistered person during FY 2017-18? Pls reply..
“Yes, but please consult the same with GST practitioner for more clarifications”
Sir,
what does it mean Mismatch of ITC availed under RCM with GST Payment under RCM. Please explain.
It means ITC claimed under RCM is different from the ITC available under RCM in GSTR-2A/2B & for more detail please consult GST practitioner
what is mean rcm in gst
RCM means Reverse Charge Mechanism, in this recipient have to pay tax on Goods/Service received
Sir,
Our auto populated itc is 8000 cgst & 8000 sgst but we have paid rcm 6500 cgst & 6500 sgst but as per rules we can claim only 5% more than auto populated gst, how can we claim this rcm paid amt?
A registered Transporter ( Service provider )under GTA has raised a bill of transportation to a registered company ( Service receiver ) of Rs.10000/-+IGST@18% Rs.1800/- Total Inv Value Rs.11800/-
Is RCM liability is required to pay by Service receiver ?
Or only to avail input credit by service receiver on GST Invoice raised by GTS register transporter ?
Yes, RCM liability is required to pay by the Service receiver
If I Purchase goods from URD wroth rs 4000 and I sell these URD goods.
Tell me if I want to pay tax on sales or not?
because when purchasing it is under the limit and exempted.
so is it exempted till sales too so I make an invoice without GST?
If you are an unregistered seller then no need to pay tax
i am a marble dealer, and purchased goods of rs.169344/- from rajasthan from a registered dealer and also received a freight bilty of 29300/- who is also registered under gst. will i have to pay gst under rcm @ 5% whether the gta supplier is registered under gst .
Yes
RCM – ITC can be availed the same month is it possible, please send Notification Number and how it’s possible kindly clarify
Dear sir, there no such notification available on cbic.gov.in regarding same, but you can claim the ITC in next period buy you have to pay the RCM liability amount in same month
The invoice value included GST and the payment was not accepted without GST. Hence, we have already paid GST on our Bill for land rent to the Ministry of Railways. But now my 2B shows the tax liability under reverse charge. If I proceed without filling the details in my GSTR3B then there is variance in my GSTR3B. In that case, whether I have to again pay the tax under RCM and then claim ITC or I can directly claim ITC without adding the tax amount under inward supplies liable to reverse charge.
Dear sir, you have to show the same in GSTR 3B under inward supplies liable to RCM & have to pay tax again, but the tax you have already paid to the supplier will be available for claiming ITC as it is available in your GSTR 2B. Hence in this way you have paid tax one time only
i have paid transport service payment to unregistered truck owner so rcm paid 5 % transport value but which head this rcm i have paid IGST CGST ya SGST please reply
If it was paid within the state then show under CGST & SGST heads or if it was paid inter state then show under IGST head
Hello,
I own a digital advertising agency and currently providing services only to foreign clients, so I’m an exporter of services under GST without payment of tax (with LUT).
Now, in my business, I buy advertising from companies that are not based in India.
1) So I wanted to ask if I have to pay GST for purchases on advertising and other online services from companies based out of India, under RCM? If yes how much %?
2) Can I claim the refund of paid GST under RCM since I’m an exporter of services?
3) Is there also a 6% equalisation levy applicable to my business? I read about this on another website from a CA.
“Please consult with GST practitioner for the same”
Where do I find contact details of GST Practitioner? Or do you provide this service?
Please go to this link for the same https://services.gst.gov.in/services/locategstp
Thank You
I want to know that is there any reverse charge applicable on consultancy fees. include the hiring staffs on individual basic applicable for RCM or GST
“Please contact to GST practitioner”
individual consultant GST threshold limit crossed out but he is not registered GST
he has raised an invoice for Rs 30L
what will do?
He needs to first register himself under the GST system
Sir if we pay May-21 RCM output on 20th Jun-21, can we utilize the RCM input for discharging the May month normal output liability. (May-21 GSTR3B)
Yes
Can we get a refund of GST paid on the purchase of vehicles used for renting of car purpose?
You can claim ITC if Renting the motor vehicle is your sole business
Dear Sir
One of our party uploaded a freight bill in RCM By mistake while reversing an entry as an e-invoice and also uploaded a credit note against the same. Do we need to pay RCM or we can exclude it
This mistake is due to negligence and clerical error of the third party ( service provider ), thus the amount showing up in GSTR 2-A as RCM Invoice, You should not be worried about such except
If you have taken its claim and book it as an expense.
Correct Working:- Don’t use that RCM Invoice in “computing RCM Liability and then claiming it “.
we have some sales invoices which are under RCM, but mistakenly we have paid the GST on that invoices also, what can we do now…?
Please amend the same in GSTR 1
How can we amend GSTR 3B
GSTR 3B cannot be rectified
So can we claim refund..?
Yes you can, but please consult it with GST practitioner
You can adjust the excess paid Tax in the forthcoming return by reducing the liability in GSTR 3-B of the coming period, by the same excess tax amount.
Correct
Sir,
Whether ITC credit is allowed if I have paid GST under RCM for purchase from an unregistered person even for less than Rs.5,000/- purchase per day
yes, it is allowed
Sir, By oversight I have mentioned in GSTR3B the amount of Rs.355278933 in Exempted Column instead of mentioning Rs.3552789.33 what will be its impact. please suggest.
It will impact your GSTR -9 but you can rectify the same in GSTR 9, and showing the difference between GSTR-1 & 3B
We are an exporter of service to UK based company and exporting service under LUT. RCM is applicable in case of Supply from an Unregistered dealer to a Registered dealer ??? Like rent, professional service, etc?????
Yes
Sir, March 2020 freight RCM was paid in June 2020 GST3B and ITC on same claimed in June 2020, is it mandatory to show this in Annual return 2019-2020. There is no provision in annual return to show RCM pertaining to 19-20, paid in next year.
Please guide.
Dear sir, you can show the same in Table no. 10, 11, 12 & 13 of GSTR 9
If my company paying an Indian Lawyer for a Canadian client (Like an intermediary) because the client couldn’t pay directly to him. Do we need to pay a reverse charge for that?
In case of lawyer fees RCM applicable, Hence you have to pay the reverse charge on that
A Registered Trader paid RCM on Transportation Charges paid to GTA for Purchase of EXEMPT GOODS.
Can he Avail Credit of Such RCM?
No
So in GSTR-3B, ITC of such RCM to be Mention in Reverse ITC Column or Ineligible ITC Column?
Inward supplies liable to Reverse charge column
But, You Said Credit Not Available to Claim Such RCM.
If Tax paid under RCM for Exempt goods then in that case it is shown under the ineligible ITC column
Hello sir,
I run a transportation company, I have two clients one of which accepts invoices in RCM where GST is not charged while the other one says to raise invoices with 12% forward charge. So, is it possible to raise invoices in both RCM and with 12% forward charge using a single GSTIN to different clients?
No
Hi sir
We are paid rcm challan in gstr 3b how we show in GST audit
Dear Sir, whatever challan you have paid in GSTR 3b. It will be shown in GSTR 9 in the same way it will also reflect in GSTR 9C too
In the case of import of goods and services, if an NRTP take GST registration, then whether GST will continue to be payable in RCM.
RCM not applicable in case of IMPG
Sir, I import goods from China. Usually, the ocean freight is prepaid by the Chinese seller. Still, do I need to pay RCM on the freight?
Sir, Does RCM u/s 9(4) applicable for FY 2019-20 supplies from URD under GST? if yes is there any notification for the same? As per my knowledge, it was deferred till 01.02.2019 after that it is applicable.
Yes
It appears that no notification is issued u/s 9(4). subsection (4) has been amended w.e.f 01.02.2019 which reads as under.
Sec. 9(4) – The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of the supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both.
Dear sir,
whether commission paid to pigmy agents by a bank or co-operative society fall under RCM? if not who has to pay GST on the commission paid.?
Please contact to GST practitioner
Our industry is cotton ginning & pressing. we had purchase cotton from farmers from 2017 to date. we had paid RCM on cotton purchase from Feb 2019. In the period from June 2017 – Jan 2019 we have not paid RCM. but we had paid GST on Paid sales (in this period the sales are more than purchase and we have no stocks were kept at our industry). in this case we have applicable to pay RCM during the period from Jun 2017 to Jan 2019. please give suggestions and solutions for not payment RCM in that period. we are paid RCM on cotton purchase from Feb 2019 to the date.
Please contact to GST practitioner
Sir,
We are purchase of Raw Materials from other state. We have paid the lorry freight. We have any liability under RCM? Any slab under this RCM scheme. (for example, we have paid the lorry freight 4 lakhs per month to the same transporter. When the liability is attacked to me) payment made above 40 lakhs or the payment made above 20 lakhs………………….
Please go through Sec 9(3) & 9(4) of CGST Act 2017 for detailed analysis of RCM under GST
Hi Sir,
Please advise if the ITC in case of RCM Liability paid can be claimed in the same month. Can you please advise the relevant sections/clauses in the act to substantiate the Yes/No?
Yes, you can claim the same in the same month, please refer to sec 9(3)/(4) of CGST act 2017 for your reference
Sir, I paid lorry freight to 2transport operators like 800/- & 350/- then RCM apply both or paid above 750/- per day & i didn’t paid RCM in F,Y 18-9 & 19-20 If i pay now then how can i claim this input
Please contact to GST pratitioner
My Security Services Agency is a partnership firm. I have provided drivers to a hospital that is corporate. They are asking me to deposit GST & claim later since RCM is not applicable for drivers. Please clarify. thanks
Regards
Dear sir/madam,
We are doing Customs clearance of goods (CHA) & arrange transportation after clearance, on the clearance bill we collecting 18% GST by the consignee on transportation and the pay the same to the GST department.
here the question is transporter is preparing the bill in our company name & filing GSTR1 in our company name which falls under our GSTR2 column (transporter bill & our payment are differed as per our agreed rates).
After paying GST on transportation in our Invoice / Bill by collecting from the consignee
are we need to pay again GST under RCM on the transportation bill also (since the transporter bill amount & our payment will differ as per agreed rates).
The transportation part is a big headache due to the lack of a separate column in the GST filing chart.
“Please contact to GST practitioner”
Sir,
in which goods and services, there is RCM imposed, plz give me a list of rcm,, I have an idea about the only rcm on transport and security.
Read the complete post for complete details about RCM
I am supply goods to the IGST region, Both receiver and supplier are GST registered. The GOODS are sold on a door delivery basis and the cost is accounted for in the price of the goods on which GST is charged.
I use a GTA for delivery of goods and pay the GTA should I do a reverse charge on the transport also, since I have paid the GST in the sale price(which is inclusive of transport) of the goods already.
Yes
for a transaction, RCM is actually not applicable. but my client with an assumption that any transaction made with an unregistered dealer is RCM, and has paid under RCM and in the same month shown it in ITC. RCM not reflected in gstr1. how to rectify this. its an error. the RCM has been shown both underpaid and ITC. pls clarify
If it is not an RCM transaction then you have to reverse the ITC in GSTR 3B itself
I purchase goods from China and send them directly to the USA where I use Flipkart to sell my goods. I am a registered person in India, so my question is whether I should pay RCM on services provided by Flipkart to me on the basis of the import of services.
Yes
Respected Sir/Madam,
We have paid a tax on-forwarding charge basis and filed the GST returns from November 2019 to January 2020. However, subsequently, we have amended those invoices on which GST was paid on a forward charge basis to reverse charge. the party has debited us the amount of GST paid by them against the amended invoices
From now on we only raise reverse charge invoices. there are no forward charge sales
My question is whether we can claim a refund of the tax paid earlier on-forwarding charge basis
Dear sir, since you have only raise invoices on a reverse charge basis, that means you do not have incurred any liability from now, so the question of taking ITC on previously paid tax on the RCM basis does not arise.
SIR,
ONE OF THE OVERSEAS VENDOR, COMES AND PROVIDES SOME TECHNICAL INSPECTION SERVICE TO ME IN INDIA. AT THE TIME OF RAISING BILL HE RAISED FOR THE SERVICES ONLY. NOW AFTER A MONTHS TIME, HE RAISES A BILL SEPARATELY FOR HIS AIR TRAVEL. EXPENSES. SUPPORT BILL IS NOT ATTACHED WITH THIS INVOICE. AM I PAY GST TAX UNDER RCM FOR THIS OR IT NOT NECESSARY. PLEASE ANSWER WITH REASONING.
“Please contact to GST practitioner”
one of my clients is facing a problem. IGSt input balance can not adjust SGST liability after adjusting IGST and CGST liability. Why sir.
and one more question. IGST balance showing in the CESS column. why give the reply, please
IGST ITC balance can be adjusted with IGST first after that it can be adjusted into CGST& SGST in Any manner
Sir,
I am service Receiver of Transport charges, I want to pay on RCM on Transport charges, and I also want to ITC claim of RCM. What is the rate of RCM for me? (Transport service Receiver)?
12%
Sir,
We are registered in Delhi, Uttar Pradesh, and Haryana under GST. We have received WORK CONTRACT from Uttarakhand. Please clarify us we need to take GST registration in Uttrakhand or we can continue the billing from our Delhi Head office,
No need to take extra registration provided ITC of same is not eligible to you
Do purchase of taxable goods from an unregistered dealer of value 46000 in a month attract GST reverse charge? is there any monthly or annual limit of the amount? thanks
No
We are Gujarat based Pvt Ltd Co. and we receive Taxable Goods by Unregistered person (GTA) of Uttar Pradesh who lives in Gujarat. Goods are picked-up from Gujarat and Supplied within Gujarat.
In such case, whether RCM applied as I GST or C / S GST…? (As just PAN card address is inter-state)
In case of the unregistered person, PAN address is considered so IGST is taken as RCM
Hello Sir,
I am a horticulturist and being a technical person RCM concept is very new to me. I have one query. we are taking services of some foreign experts and have a contracted value of say ‘X ‘ amount. we are deducting the GST from this contracted amount. but regarding RCM I want to confirm that will the RCM amount has to be deducted from the contracted value of will this amount will be over the contracted value and has to be paid by the receiver only? please clarify
You need to see your contract with a foreign consultant who is liable to pay Indirect Taxes in India. Is your payment is Gross payment including taxes then you can deduct the RCM under GST. Gross up the amount see below example:
Contract Price: 100 ( Inclusive of all Taxes)
You need to pay to foreign consultant = Rs. 84.75 (100/118*100)
You also need to deduct payment under section 195 of the Income Tax Act.
If your contract is indirect taxes will be paid as extra then you need to pay Rs. 100. Further, you need to deduct payment under section 195 of the Income Tax Act.
RCM under GST, First you need to take legal opinion is your services are covered under exemption then you don’t need to pay GST under RCM.
RCM on transport depends upon transportation service like pick up to drop location or Billing address of the transport company? please advice
Pick up the Drop location
I am from Kerala and my enterprise is registered under GST. I bought some material for trading from Vadodara. It was transported through the GTA namely ARC..Inthe GC, it is mentioned that I must pay GST under RCM.
I understand that the GST rate payable is 5%IGST if I don’t want to avail ITC. Otherwise, pay full IGST @12% and avail full ITC. Is my understanding correct?.
Correct
I have made payments through RCM for January 2018 and June 2018 and further no outward supply was made. can I claim a refund of the amount paid? If yes, then within what time?
Sir, First you have to show Inward supplies under RCM in GSTR 3B in Table 3.1 d & and the same ITC you can claim in Table 4 point no. 3, but you have to pay in cash the same ITC amount
Sir,
I am planning to start a proprietorship for providing consultancy services. I am based in Bangalore but my business will be interstate. I don’t expect it to exceed Rs. 20 Lakhs in the first few years. My questions are (a) do I need to register under GST? (b) Will my clients require to deduct GST under RCM, if they are unregistered under GST and (c) if I need to register, can I go for the composition scheme. Thanks in advance for your advice.
Your business will be required to register under GST even if your T/O is below 20 lakhs. An unregistered client does not require to decduct GST under RCM. No, you can not opt for composition scheme as you deal in an interstate transaction.
Hi Sir,
Can we avail ITC on GST paid under RCM from Registered service provider(GTA)?
YES
Hello Sir,
We have received the goods from Maharashtra to Karnataka through Transporter.we have paid the freight charges to the transporter. Also, we have pay GST under RCM. How do calculate the GST amount like CGST+SGST or IGST?
It is calculated through IGST.
Hi
Can you please clarify,
My question is RCM on GTA Recipient of Services
We are paying tax under RCM on GTA @ 5%, are we eligible to claim the input tax credit?
Yes, you are eligible to avail ITC paid under RCM on GTA service after payment of tax, if the input service (GTA) is used in providing taxable supply.
When GST under RCM on GTA is paid @ 5%, ITC should not be availed as that rate is subject to such condition. Please provide the basis for the availing of ITC.
“Wherever a rate has been prescribed in this notification subject to the condition that credit of input tax charged on goods or services used in supplying the service has not been taken, it shall mean that:-
(a) credit of input tax charged on goods or services used exclusively in supplying such service has not been taken; and
(b) Credit of input tax charged on goods or services used partly for supplying such service and partly for effecting other supplies eligible for input tax credits, is reversed as if the supply of such service is an exempt supply and attracts provisions of sub-section”
Please see reply to Question No.10 in Sectorial FAQ’s on Transport and Logistics under MY GST in the Home page of CBIC.
A Hsg Socy is taking service from a security agency to supply guards @ Rs 10,000/- per month. Whether the Socy has to get registered under RCM and if so, how to go about it.
If housing society wants to claim ITC which is paid by them by way of RCM then only It needs to get registered otherwise not
Whether Waste Oil (HSN-2710) procured from an unregistered person will be covered under RCM u/s 9(4) of the CGST Act?
“Please Contact to GST Practitioner”
I am a registered Person under GST and doing business of freight forwarding. So For clearance of Shipment i availed service of Transport and Paid this amount by Cheque. I had charged transportation expenses from our Client with Gst. I want to know I have to pay GST under Reverse also or not?? because I had paid GST on the Service invoice in which transportation is also included.
Sir
I think for the recipient of GTA service, the GST rate is 5% irrespective of GTA is registered or unregistered. Please clarify.
“If the GTA is also unregistered, there will be no tax liability on the GTA or the recipient. In such cases, where a registered GTA is liable to pay tax @ 5% on transportation service, 2 options have been given to the GTA: Pay tax @ 5% with no input tax credit. Pay tax @ 12% with full input tax credit.”
one of my clients doing business in paper scrap which is taxable. all purchase made from unregistered person, can he is liable to pay tax on RCM basis
Yes
We pay RCM MONTH AUG-2017 RS.28302+28302 IN AUG-2017 GSTR3B RETURN. AND SEPT-2017 RCM 44569+44569 NOT PAY TILL DATE BUT IN OCT GSTR3B WE CLAIM ITC 44569+44569 SOTHAT TODAY GST ANNUAL RETURN QUARY OUR CA PAID 44569+44569 BUT 28302+28302 NOT REFUND GST GOVERNMENT IT IS POSSIBLE
ITC of 28302+28302 can not be availed because the time to take the same has lapsed now.
My client is a Manufacturing Company and manufactures both Taxable and exempted Goods. If the company pays GST under the RCM mechanism. Please advise whether ITC can be claimed on the total or in proportional to the sale of taxable and exempted goods
ITC can be claimed in proportional to the sale of taxable and exempted goods
thank you very much for the prompt reply
As per the Notification regarding CGST exemption from reverse charge up to Rs.5000 per day, it has been given that This notification shall come into force with effect from the 1st day of July 2017.
Refer – Notification No. 8/2017-Central Tax (Rate) New Delhi, the 28th June 2017
So, RCM on unregistered purchases will be not applicable even till 13/10/2017…
Portal had extended the RCM transaction on GST portal that’s why it was not applicable till 13th October 2017.
Dear sir
There is an RCM Liability on Ocean Freight, But we have taken 100% CIF value & calculate 5% RCM on & also ITC took. But actually, for calculation of RCM under Ocean freight, we should take @ 10% of CIF. Now We need to do any rectification or not as whatever paid is 100% avail.
We have file GSTR-3B return without RCM, Now We have come to know that we have to pay RCM on Transport Service which we don’t know. now the question is we want to pay RCM in Annual Return, can we paid it in DRC-03, and how we claim credit for the same the amount is of RCM nearly Rs. 1100000 to 12 lacs in Annual Return.
Yes, you can pay tax in Annual Return/DRC-03.
PLEASE INFORM IN ABOVE CASE REVERSE TAX PAID WITH INTEREST. IF YES PERCENTAGE OF INTEREST. PL. ALSO CLEAR THAT IF PAYMENT MADE THROUGH DRC-03, ITC CAN claim OF REVERSE CHARGE AND WHEN?
PL. INFORM. THIS MATTER IS MOST IMPORTANT
Interest rate is 18%. You can make payment in DRC 03 but you can not claim ITC through DRC 03. For more details please contact practicing CA.
I TAKE GTA SERVICE. I PAY GST UNDER RCM. WHAT TAX RATE APPLICABLE IF I WANT ITC
if GTA Charges 12%, GTA must deposit tax and ITC can be availed Or
if GTA Charges 5%, RCM applies and recipient must deposit tax and ITC cannot be availed
Dear sir,
if GTA Charges 12%, GTA must deposit tax and ITC can be availed Or
if GTA Charges 5%, RCM applies and recipient must deposit tax and ITC cannot be availed.
At what rate, RCM should be paid?
RCM applies at the higher tax rate
Can one single invoice contain many line items some of which are under RCM?
If we have taken a truck from a GTA (1st) and Our Company is also a GTA (2nd) for a movement from Rajasthan to Gujarat. We are asking the bill from the 1st GTA will have reverse charges as No. As we had our Bilti/LR/Consignment note for the movement.
My finance person is admitting that the 1st GTA should give the bill without GST and Reverse charges as “No” and the 1st GTA is saying it is not possible.
What is the solution?
Hello sir,
Please resolve my query:-
If RCM for the month of Sept 2019 is paid while filing GSTR 3B on 19.10.2019 can we claim ITC for such RCM Paid even in the return of Sept 2019 filled on 20.10.2019 or in the next month return i.e. OCT 2019 GSTR 3B return filled on 20.11.2019
You can claim ITC in the month of Oct.
if there is a registered under GST taking of a service from an unregistered vendor(individual) for Cab hired on monthly basis weather there is GST applicable or not.
My company GST Register in Kolhapur(Maharashtra) purchase Scrap from Delhi & despatch to Gujrat by direct Scrap is not received in Kolhapur (Maharashtra). Bill is made on my name at Kolhapur address & GTA Registered office in Mumbai. Freight paid by me. What can I pay IGST, CGST +SGST through RCM?
Do RCM under GST Applicable for labour charges or hired labour?
In case the outside hired labour are unregistered users, then the supplier of service will have to pay GST on reverse charges on the hired charges paid to the labour.
In case the outside hired labour are procured from registered agencies, then no reverse charge will be applicable. The supplier has to acquire labour from registered agencies on payment of GST.
Hi,
I paid Rs.500 under RCM. Can I claim Full 500 (Taxable & Exempted Portion) or Taxable portion alone.
I paid the tax instead of supplier i.e. Railway under RCM in JUNE 19. How should I claim it as ITC & in which month. Please detail it.
in that month where you pay the tax to govt. (which is June)
Composite dealer purchases from unregistered dealer above 5 thousand RCM applicable. GST registered dealer salaries, freight charges, bank charges, rent paid business. All expenses RCM applicable.
As per the recent amendments in Feb 2019, RCM on purchase from an unregistered dealer has been postponed till 30th Sep 2019.
I have received a labour contractor bill without GST. I make the GST for the same, how do take input for the same bill
After payment of GST on RCM basis, you can claim ITC for the same in GSTR-3B.
but sir,
In “Liability due to receipt of reverse charge supplies” column there an excess (3b-2a (bcz of other dealer is unregistered) so this statement remains the same or any mistake?
Section 9(4) of CGST / SGST (UTGST) Act, 2017 / section 5(4) of IGST Act, 2017 provides that If an unregistered person supply taxable goods or services or both to a registered person then the registered person shall be liable to pay tax under reverse charge basis as recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
Whether registered person availing services (not for the furtherance of business ) from unregistered person shall be liable to pay tax under RCM? ex. security charges paid for the bungalow of the proprietor (individual) which is used for the personal purpose and such expense is debited to the capital account.
I am a registered dealer in Kolkata. Received goods from Delhi from a transporter. The transporter is having an office in both Kolkata and Delhi and unregistered in both states. Address in bilty of the transporter is their head office Mumbai. so in what head I have to pay rcm? IGST or CGST-SGST?
If a transporter is registered in goods receiving state or not registered under GST then CGST and SGST would be payable otherwise IGST will be applicable.
Hi,
I want to know that, Is RCM Paid by Rent a Cab Operator can claim as Input.
We paid the freight charge to the transporter and also charged some amount in customer invoice. My question is which amount is liable for GST under RCM. Full freight amount to be paid to the transporter or freight amount after less charged in the invoice.
Please help with this. Thanks and Regards
RCM would be leviable on the transaction value charged for transportation services.
Hello. I have a query on security services. Suppose a Service provider provides his services to both RD and URD. For supplies to RD, he is not liable for GST as he falls under RCM, How will he raise an invoice for such services to RD? Regards,
In that case, you need not mention tax amount in invoice and also need to mention that supply is covered under RCM.
CAN I COLLECT INPUT TAX CREDIT ON SECURITY SERVICES AFTER PAYING THE TAX AMOUNT ON GOVT.?
Yes after paying tax on RCM basis, you can claim ITC.
Hello,
We are a private limited company. We have availed legal consultancy which attracts RCM in 2018-19. Company registered itself under GST in April 2019. Can we pay GST under RCM now with interest under the GST Registration Number received in April 2019? How about the filing of return?
YOU HAVE TO OBTAIN REGISTRATION BEFORE AVAILING SERVICE WHICH ATTRACTS RCM LIABILITY. YOU CANNOT FILE A RETURN FOR THE PERIOD PRIOR TO THE DATE OF REGISTRATION.
I have two conditions:
1) I pad to Transporter of Rs 2000/-, transporter issued a proper document.
2) I pad to Auto Riksha of Rs 2000/-, there is no proper documentation for expenses booking.
Both transaction, I booked in Freight Expenses.
Is there any RCM liability, If Yes, on what amount.
Regards,
Pradeep
I have a question on RCM.
I am a tour operator and I have supplied a tour package to my client which includes transportation, accommodation and food. I have paid GST on my total sale price @5 %. The hotels have provided me with GST invoices, but the transportation provider is not registered under GST. Now:
1- Am I liable to pay tax on the payment done to transportation provider under RCM?
2- What will be the GST rate applicable for such a transaction?
3- Am I eligible for GST input credit on the above transaction on the tax paid under RCM?
Will be looking forward to your suggestions.
Best Regards
1. If the transporter is a GTA, then you need to pay tax under RCM.
2. GST will be payable at the rate of 5% without taking ITC.
3. You first need to pay RCM liability and then can utilise that as your ITC.
For Reverse charge, Transporation of Goods and not of human being, hence a Tour operator charging for transportation of passengers and not Goods, in such case no need to pay GST unless you Trasport Goods, you are providing Conveyance local and Bus for long distance for passengers hence no Reverse charge applicable, for Goods Transportation 5% is rate.
I HAVE A QUERY FOR FREIGHT PAYMENT UNDER REVERSE CHARGE MECHANISM – If we have sold goods IGST OR LOCAL and freight not added in Invoice but directly paid to the transporter on behalf of the purchaser. Should we have to pay RCM and can we claim ITC on that freight payment ??? Please give your kind advice …..
RCM ITC adjusted to RCM tax Only or take RCM ITC to All other ITC
It also can be adjusted against normal tax liability.
sir, My question is I have paid RCM sep-2017 but I have not taken credit in Oct-2017, now I can take this credit in March-19 3B Return? yes or no.
Yes, as per recent amendments you can claim ITC till due date for Mar 2019 return.
1. GTA not giving any invoice they are giving only consignment note than would we have to pay RCM?
2. the consignment note we receive the GST mention our state but we purchase goods from other states what should we pay SGST and CGST or IGST?
Do we even have to RCM on purchased autoresponder services such as Aweber, Trafficwave, etc?
If yes, can we claim ITC on such purchases?
I have made a supply on a reverse charge basis now how will I show this supply in GSTR 1 and GSTR 3B. I mean to say whether it will be a nil rated supply for me?
I had wrongly paid excess IGST on RCM basis for the month of Mar’18 on 20th April’18 by Rs.14,000. I have not taken the credit for this excess amount in the FY 2018-19 up to Feb’19. Can I adjust this amount now from Mar’19 onwards?
Yes, you can adjust the amount now.
Can excess paid tax under RCM be claimed as ITC? Or claiming such excess paid tax as a Refund is the only option?
You can claim the same as ITC
RCM has to be paid in cash only, I just want to know that how can I claim ITC for the same. Should I claim ITC in the same month in which RCM is paid or In the subsequent month? we are raising our liability in the same we are claiming ITC so there is no payment to pay. Can you explain with a small example?
Liability under RCM has to be paid in cash only without utilisation of any ITC. After making payment, you will be eligible for claiming ITC on the amount paid in cash under RCM.
for E.g. if you are having liability to pay Rs. 100 under RCM, then it has to be first paid in cash without any ITC utilization. after that, you can claim ITC of Rs. 100.
We are in c&f for xyz company. our services(abc) is transported handling routed through GTA as sub-contractor.
subcontractor give reversal charges to our concern, after that we are giving reversal credit to xyz company.
It this care xyz company pay the transport charges at 5% on total transport value.
Two-time reversal charges are created one is sub-contractor to abc & abc to xyz company. it is case abc, how to adjusted the sub-contractor reversal to abc directly. it is possible or not.
My client purchased a website domain from godaddy.com. the invoice doesn’t have any GST component since the service provider is non-resident. should my client pay reverse charge now for that bill?
As the godaddy is regd. under GST in India, then you should have asked them to issue a tax invoice.
Even after asking GoDaddy to supply GST Invoices, they are not doing it. Also, they have no support team to guide with GST System at GoDaddy. I also need help that would it go under RCM? If yes, which tax is applicable in RCM: IGST / CGST + SGST? Also any guide through to help with filing?
Thanks in Advance 🙂
When you supply your GST number to Godaddy, they don’t cut GST because you are importing services outside India. Godaddy is not liable for taxation structure in India so it just keeps GST Zero now you are liable to show your purchase invoice with reverse charge and you need to pay 18% GST on the taxable amount.
We are a GST registered entity – if we get management consulting services from an unregistered partnership firm whose turnover is less than 20 Lakhs in this financial year, do we need charge GST under reverse charge mechanism. This service is a recurring service monthly.
Also, we notice that this service is not listed in RCM services where mandatory GST deduction is required.
MY QUERY IS, IN CASE OF SEPARATE MATERIAL TRANSPORT BILL WITH 18% GST, WHERE THIS 18% GST SET OFF IS TAKEN, IN THIS CASE, IS RCM IS LIABLE TO PAY?
Sir, Battery Operated Vehicles are used by a service provider to transport rail passengers from the station to the coach in the train and user charges are collected. Is user charge liable for GST? If so, at what rate and what is the SAC?
Is GST paid under RCM for availing legal services eligible for ITC? How is “furtherance of a business” defined for a service provider?
Yes, it is eligible for claiming ITC. The phrase “in the course or furtherance of” has not been dealt with in any manner under the GST law. It simply means anything done in relation to its business for revenue generation or growth.
WHEN FREIGHT CHARGES SEPARATELY MENTIONED IN THE PURCHASE INVOICE AND THUS PAID THE FREIGHT VALUE DIRECT TO SUPPLIER AS COST OF PURCHASE (ALONG WITH MATERIAL VALUE), THEN WHETHER THE SAID FREIGHT CHARGES IS APPLICABLE FOR RCM?
If transportation is part and parcel of sale, then freight charges are liable to the same rate as is applicable to the goods sold. since GTA is not involved, no RCM is applicable.
Sir,
As per new notification w.e.f. from Jan -2019 we paid RCM on security agency bill, can we claim ITC in next month? and earlier the tax rate was 18% the tax rate is the same? please give your valuable advice.
Yes, you can claim ITC even in the same month.
Can you please tell me what is RCM % on security services?
100% RCM is applicable under GST.
RCM has to be paid in cash only, I just want to know that how can I claim ITC for the same. Should I claim ITC in the same month in which RCM is paid or In the subsequent month? Can you explain with a small example?
Rs 200 to 500 paid to transporter whether he is registered or not. Please tell RCM in GST regime.
If the goods are transported through GTA, RCM is required to be paid by the recipient of such service if he belongs to specifies the class of persons. Refer CBIC’s content for the detailed explanation of RCM.
http://www.cbic.gov.in/resources//htdocs-cbec/gst/goods_transport_service.pdf
Dear Sir,
If RCM paid against transportation charges material received from outside the State, ITC is eligible against this transaction.
kindly clarify.
If the tax is paid by you under RCM, you can claim ITC of the same.
Reverse payment amount may be refunded under GST Act-2017.
Dear Sir,
Due to some misunderstanding, we have been depositing RCM GST on all the unregistered Purchases / Input Services for the last one year. Also, we have been taking Input Credit of the same in the successive month regularly.
You are kindly requested to please guide us if the Department will disallow Credit of the same?
Thanks…
Yes, Department may disallow the same on the ground of wrongful availment of ITC, since by mistakenly credit the ITC under RCM, you can claim a refund for the same.
My client purchased a website domain from godaddy.com. the invoice doesn’t have any GST component since the service provider is non-resident. should my client pay reverse charge now for that bill? is godaddy.com comes under the purview of “e-commerce operator”?
My client Is a Society receiving Security services since RCM is applicable w.e.f 01/01/2019 the tax has to be paid on RCM basis by Society. Will Society be eligible to claim ITC on the same?
Yes, society can claim ITC of it.
Should we pay the reverse charge for payment of professional fees for teaching institute? Please provide rate too if it’s required.
No you don’t have to pay tax under reverse charge.
Sir,
Do I need to pay RCM on payment of brokerage to an unregistered person or it is also suspended till 30th September 2019?
It is suspended till 30.09.2019
Do I need to pay RCM on payment of brokerage for parcel booking at Railway parcel office? The Railway booking agent is an unregistered person.
Yes
Dear Sir,
Please Guide me ..!!
Mene Transport Service Rajasthan me le and Transporter and Supplier Other State (Guj.) ka h and Transport Amount 3660/- h, in this case, mujhe Reverse Charge me SGST and CGST bharna h ya fir IGST.
3660 *2.5%and 2.5% CGST and SGST or
3660*5% IGST
Since transporter and supplier both belong to Gujarat and billing address shall be Gujarat then CGST and SGST needs to be paid.
I have a query regarding RCM: I have Excess RCM paid of Jammu. How can I do correctly?
Correct it in next period return by paying less liability in RCM.
The service provider falling under reverse charge mechanism ( GTA or Sponsorship or Recovery Agent) has charged GST on their bill. Should service recipient pay the bill amount including GST and not pay tax under reverse charge? Or pay the bill without GST and pay GST under reverse charge instead?
Service providers providing these services shall not charge GST in their bill but service recipient shall charge GST in their bill and shall pay tax under reverse charge to govt. in his return.
My client is an AC bus operator for transport of passengers from Karnataka to Maharastra and registered under GST. He gets passenger bookings through e-commerce operator (redbus, Abhibus etc).
Q – Is he liable to pay 5% GST or is it the obligation of the e-commerce operators to pay GST.
Being GTA client is not liable to pay GST but the e-commerce operator shall charge GST and pay the same under reverse charge.
One of my clients availed renting premises 15000/-PM . is reverse charge applicable on that during the period July -17 to Oct-17?
further, he cannot show in his return about this till mar-18.
if he shows in April 18 return and reverse charge tax liable for rent, can he claim the input or not. April return to being filled in dec 18.
Reverse charge is not applicable on rent. and ITC can be availed on rent paid.
I have a query..we are registered in Goa and we hired a GTA registered in Kolkatta state having a branch in Goa(unregistered) to ship the goods to Telangana state. GTA raised an invoice without charging GST in which Goa GTA branch name and address were mentioned as billing branch name & address. So whether IGST RCM or CGST/SGST RCM would be applicable?
IGST RCM would be applicable.
I am a Transporter and providing GTA service to various companies, service receivers are paying RCM GST on behalf of the Transportation Service. so I am not liable to pay GST. I have not filed my GST returns yet, so the huge penalty accrued,
what should I do?
Please reply
Being GTA you have to file NIL return and has to pay late fees on same.
HI, one of my clients is a service provider (GTA) for BPCL, we are fling GSTR 3B regularly as nil, the BPCL is just transferring monthly payments through online without GST. Whenever we approach them, they are saying that they are paying tax through RCM and not taking any payment receipt. My question is how to show the turnover in our GSTR3B ?. Is it correct filing nil return?
In the case of RCM under GST, turnover should be mentioned in column 3(a) of GSTR-3B but tax columns should be left nil.
Your client cannot show turnover in GSTR-3B as tax is paid by BPCL under RCM and by if you show turnover in GSTR-3B then tax amount is needed to be filled mandatory in GSTR-3B, therefore there is no option then to file a nil return.
I have the query, I have received the transport service Maharashtra to Gujarat. I am register in Gujarat and transporter registered in Maharashtra. Under RCM, Which tax Applicable SGST & CGST OR IGST?
Under RCM, you have to pay IGST on services.
Hi,
I am a software service provider. I rent servers from US and EU monthly for $500-$800. Do I come under 9(3) or 9(4) under GST? Because under 9(4) I don’t need to pay RCM till 30, Sep 2019.
Else I need to pay RCM.
My second question is, I have nearly Rs.40,000 in input credit, can this be used for RCM offset?
thank you for your time.
Since it is an import of service as the supplier is located in non-taxable territory, therefore, such transactions are covered under Section 9(3) and you need to pay tax under RCM. Further, input tax credit cannot be used for RCM transactions. RCM tax needs to be paid in cash only.
We need to raise a separate GST Invoice, only for the Freight Charges.
Freight Amount is Rs.16500-00 without tax.
With I.T – TDS be applicable?
We have already raised the Invoice for the goods supplied.
We will pay the Freight Charges to the Transporter on behalf of our customer and now we need to re-claim the Freight Amount from our customer.
Can we raise an Invoice only for the Freight Charges?
What should be SAC Code and GST % to be charged on the Freight Charges?
Please clarify.
Yes, the invoice can be raised with freight with 5% rate of tax without ITC. SAC code shall be 9965.
Respected,
We are into mfg co.
1) GTA — clarify under RCM are we liable to pay for receipt of services from both registered and not registered service provider?
2) it applicable wef 1.10.2018?
3) Self-invoicing ( parallel sl no of invoicing will be ok ?) on 31.10.2018, where we have to declare in GST R 1?
4) bills up to Rs 750 are not GST taxable and Rs 1500 in day pl clarify
5) Rs 5000 is exempted – pl clarify
Thanks in advance
Shiv
(1) Yes, as GTA services fall under section 9(3) of CGST Act, 2017 therefore, GST under RCM needs to be paid even if the the supplier is registered or unregistered.
(2) No, it was applicable from 1.07.2017 right from the beginning law was enacted.
(3) If the supplier is registered then he will issue invoice but if the supplier is not registered then the receiver will issue payment voucher.
(4) Rs. 750 for single consignee are exempt and Rs. 1500 for goods transported in the single carriage.
(5) Rs 5000 is not exempted
Hi
Like I am a Recipient and depositing GST @5% under RCM on behalf of our registered GTA and some are unregistered GTA and some GTA are filling return and some are not filling who are unregistered. So the equation is it is mandatory for us (Recipient) to reconcile ITC one to one with GTA who are under RCM from GST portal?
If it is not reconciled then what we have to do?
Thanks & Regards
If GTA is registered then details of invoices need to be uploaded by them in GSTR-1 which will be auto-populated in GSTR-2A and need to be reconciled with recipient ItC even if paid under RCM.
Hi
Please do confirm as a GTA service provider under RCM whether the turnover has to be mentioned in GSTR 3B or only in GSTR 1.
If yes in GSTR 3B where it has to be mentioned?
Dear Sir,
I have balance in IGST cash ledger Rs.10000/- now the RCM amount is 5000/- I will pay RCM cash in IGST or will be adjusted in cash ledger.
Kindly give your advice
You have to pay RCM tax by adjusting cash ledger balance through offset while filing the return.
My goods transport in weekly two times, but local transport is an unregistered dealer, we are paying reverse charge I am not paid the July’17 to march’18 which we pay RCM WHAT RATE OF TAX.
You need to pay RCM tax in next month return with interest at the rate of tax applicable to you i.e. 5% without input tax credit and 12% with input tax credit.
If a registered dealer is under 5% GST then what is the rate of RCM for GTA
If a registered dealer is under 12% GST then what is the rate of RCM for GTA
If a registered dealer is under 18% GST then what is the rate of RCM for GTA
I want to understand one thing for Column No 5 in GSTR 3B.
I would like to mention that my need for understanding is for Transport Services and not for Goods………….so moving on…
If I (Registered as Regular) have Received Goods (from registered as a regular supplier), through transport (transport is unregistered under GST), and I have paid Freight Charges less than Rs 750/-, Should it be shown in Column 5 of GSTR-3B??
For your information, I regularly pay RCM Charges for Freight, when received goods from Registered Transport Company. So my question is for freight charges paid to Unregistered Transport Company
Thank You
It should be shown in Inward supplies tab in row 1 of GSTR-3B
Request you to please understand my question. I have paid Freight Charges, say Rs 500/- to the transport company (Unregistered) for Goods received.
The Amount of Goods received, I have shown in Inward Supplies Tab in Row 1, where will I show the expense of Rs 500/- as Freight Paid to the Unregistered Transport Company?
Value of goods and service shall be the transaction value where all expenses incurred shall be part of the value. Therefore, freight shall also be added in the price of goods and invoice value shall be inclusive of freight charges.
Kindly suggest, Can we take RCM credit in the same month we have paid.
Yes, you can take
Maximum exemption limit in GTA on the transportation bill. Request to Inform and Guide.
Hello, We take transportation service from both Registered and Unregistered GTAs.
And I have a few queries regarding the same.
1. Is RCM applicable on Registered GTA?
2. Few sites mention Exemptions of Rs. 750 or Rs. 1500 per day. Can you explain more about this?
3. Will Transportation service taken from URD will be counted along with all other URD purchases? If yes currently RCM is deferred till 30th Sept. so will this transportation service should be excluded? and If we make Transport transactions worth Rs 1600 from a URD it comes under an exemption of Rs. 1500 or Rs. 5000 per day.
4. Is there any limit for the monthly transaction on services received from GTA?
Kindly reply as I found your article to be most sorted out among all other articles I read.
Ans.1 Yes, RCM is applicable on registered GTA and receiver has to pay GST on transportation service.
Ans.2 In GST too, exemption of 750 in case of single consignee and exemption of Rs. 1500 in case of transportation of goods in the single carriage is available in GST vide Notification No. 12/2017 dated 28.06.2017.
Ans.3 No, transport services from URD GTA shall not fall under all other URD purchases and GST on such transportation service need to be paid mandatory under RCM by virtue of Section 9(3) of CGST Act, 2017. If transport charges are worth Rs. 1600 then same will fall under an exemption of Rs. 1500 and consideration exceeding Rs. 1500 for transportation of goods in single carriage shall be liable to GST.
Ans. 4 No there is no limit on the monthly transaction from GTA.
I am a GTA, in which table of 3B I have to disclose the turnover liable under RCM?
You need to show it in Table 3.1 point (a) without showing the tax amount.
I am a GTA and GST registered. Can I choose FCM instead of RCM when supplying services to a registered person? if yes what is the rate?
Yes you can opt for FCM and rate will be 12% with ITC
Can a registered person supplying services liable for the reverse charge under section 9(3) charge GST on his invoice in order to avoid the recipient from taking registration only for purpose of paying the reverse charge.
No, the recipient needs to pay GST under RCM.
Clarifications required:
Tax paid under RCM not eligible for set-off against ITC accumulated in Electronic credit ledger;
hence we pay from the bank account. Can we claim refund while filing RFD-01?
By oversight, we did not claim ITC in last August GSTR-3B, but the export sale is shown. ITC of August together with November is claimed in November GSTR-3B. Please clarify the following:
Can we claim ITC refund of August & November when we file refund application RFD-01 for the month of November?
Should we show the total export sale of August & November in Statement-3 and 3-A of RFD-01 monthly application for November? Is it necessary to match export sale figures
in Statement-3 & Statement-3A?
Tax paid under RCM is eligible for claim of input tax credit on subsequent payment of tax in cash. hence such tax shall not be refunded and be claimed as ITC under reverse charge in the same month it is paid in cash.
Yes, ITC refund can be claimed for both the months in November and total export sales to be shown in statement 3 and 3A for both August and November as it is necessary to reconcile the sales figures claimed in RFD-01 with books of account and return statement.
Sir If a company say X LTD is exclusively engaged in “exempted supply or non-levy supply” …. and is taking directorship services (falling under RCM). but while paying director fees the company on RCM have to compulsorily make registration…So ultimately my question is whether the company is required to register or not..!!??
Yes, you are liable to get registered since you are liable to pay tax under RCM.
As per section 23, if a person is engaged in supplying exclusively exempted supply, then he is not required to take registration.
As per Section 24, it override section 22(1) i.e threshold limit of Rs 20,00,000/10,00,000. But not override section 23. Hence registration is not required.
An UNREGISTERED PARTNERSHIP FIRM UNDER (GST) PAID OF RS. 10000.00 TO ADVOCATE AGAINST CONSULTANCY FEES, SHOULD BE PARTNERSHIP FIRM TO PAY GST UNDER RCM (REVERSE CHARGE MACANISHAM)?
IN CASE OF REGISTERED TRANSPORTER HAD SUPPLIED SERVICES TO ANOTHER REGISTERED DEALER
MY QUESTION IS RECEIVER OF SERVICES MADE RCM AGAINST SERVICES FROM REGISTERED TRANSPORTER
THEN SUGGEST ME WHETHER ITS NECESSARY TO MAKE PAYMENT VOUCHER.
Yes, payment voucher is necessary in case of R.C.M. transactions.
I have a GSTIN as I am required to collect and deposit GST on my Consultancy Charges.
I am also the recipient of Director’s Sitting Fee which is subject to Reverse Charge and payable by the company where I am a director.
While filing monthly GSTR 3B Return whether I show the invoice amount under 3.1 (a) Outward Supplies (other than zero rates, nil rated and exempted) without showing the tax amount that recipient of service pays?
In Quarterly GSTR 1 filing, it appears that invoices for Director’s Fees are to be included showing those as under Reverse Charge (as the noting says “Total Tax Liability including Tax payable by Recipient on supplies attracting Reverse Charge” should show there – “although these will not be part of actual liability to be computed on filing of GSTR 3”. Please advise on this as well.
Please also advise when from GSTR 3 will have to be filed? I have so far filed GSTR3B monthly and GSTR 1 Quarterly (turnover far less than Rs 1.5 Crore).
As both the activities are separate, you have to take new GSTIN for director services and need to pay tax under RCM and you have to show it in under column 3.1(d) of GSTR-3B and also in GSTR-2 and till now dept. has not released GSTR-3 so till that time you only need to file GSTR-3B and GSTR-1.
I am thankful for this advice.
I was only wondering how I can take separate GSTIN for this activity or for that matter, does one require to have more than one GSTIN if he follows more than one activities.
Can you please refer me to the relevant GST rules.
In fact, in case of some other persons whose earning are mostly from Director’s Fees (i.e. very little from other services), I understand that they are not even filing GST returns.
I also notice that 3.1(d) refer to Inward Supplies (Subject to Reverse Charge) whereas this appears to be Outward Supplies from my perspective.
Please help
Sir,
We are a registered dealer under GST and are paying also GST on Transportation charge in all the months till date under RCM and mentioning the same only under GSTR 3B Column 3.1(d), but due to ignorance, such amounts are not been mentioned in Column 4(3) of GSTR-3(B) in all these months. My GSTR-3B Return for the month of May/2018 is pending to file. Can I put all the left out amounts of the previous months in Column 4(3) of GSTR-3(B) Return for the month of May/2018? Whether we can claim for the ITC of the same. Please clarify.
My query is related to Applicability of RCM on GTA. Tell me whether GST shall be paid by consignee if Consignment note is in name or Consignee but Payment of freight made by the Agent?
GST in case of RCM under GTA will be paid by the payer of freight.
What is the position of RCM under GTA;if the C& F agent arranges the GTA on the principals behalf and pays the GTA.
The c& f agent charges these amounts in his C& f services Bill on The Principal and charges 18% GST.
Sir,
We are a registered dealer under GST and are paying GST on Transportation charge in all the months till date under RCM and mentioning the same only under GSTR 3B Column 3.1(d), but due to ignorance, such amounts are not been mentioned in Column 4(3) of GSTR-3(B) in all these months. My GSTR-3B Return for the month of May/2018 is pending to file. Can I put all the left out amounts of the previous months in Column 4(3) of GSTR-3(B) Return for the month of May/2018? Whether we can claim for the ITC of the same. Please clarify.
Yes, you can claim all your pending ITC in MAY return. As any omission in any return of F/Y can be rectified up to Sept. following the end of F/Y or date of Annual return whichever is earlier.
Many many thanks for solving my confusion.
Dear Professional
I have a query regarding ITC on RCM paid on import of Service (OIDAR) we are dealing in OIDAR services under B2B and we supplied more than 80% of our all supply to exempted educational institute/university who provides degree by law.
My question is:
a) We have to pay RCM on our all import (OIDAR) or only the comparison to outward taxable supply. Or
b) if we pay RCM on all Import, can we get 100% ITC on it and how we can claim the refund because our taxable supply other than exempt entity is only 20% of all supply.
c) sales made to the exempt entity will be considered @ 0%, exempted sales or elsewhere in GSTR Returns
d)
Your Immediate reply on this matter will be highly appreciated
Dear Professional
I have a query regarding ITC on RCM paid on import of Service (OIDAR) we are dealing in OIDAR services under B2B and we supplied more than 80% of our all supply to exempted educational institute/university who provides degree by law.
My question is:
a) We have to pay RCM on our all import (OIDAR) or only the comparison to outward taxable supply. Or
b) if we pay RCM on all Import, can we get 100% ITC on it and how we can claim the refund because our taxable supply other than exempt entity is only 20% of all supply.
c) sales made to the exempt entity will be considered @ 0%, exempted sales or elsewhere in GSTR Returns
d)
Your Immediate reply on this matter will be highly appreciated
As per RCM provisions, if the service provider is situated in a non-taxable territory, and service recipient is in the taxable territory then tax will be paid under RCM.
1) For all services, RCM will be applicable.
2) You can claim the ITC of tax paid under RCM and can also claim the refund by filing RFD-01 form.
3) Supplies will be treated as exempt.
I am running a manufacturing business. I have forgotten to tack some transport bills in RCM for the month of May-18. Please tell me what should I do to correct the same.
Pay the RCM tax for GTA services received. As of now there is no option to rectify the returns, so you can show the same at the time of match- mismatch by the department.
Sir,
If a registered GTA is providing services then in which column of GSTR-3B and GSTR-1 he needs to show his supply of services. And TAX on these supplies has been deposited by the receiver on RCM basis.
AND
Do a transporter require to mention GST tax amount on his Bilty and is he required to issue normal Bilty or invoice
plz reply sir
As GTA services are covered under RCM, so GTA service provider will enter only taxable sale amount in the column “outward taxable supplies” of table 3.1 of GSTR-3b, tax amount columns to be left blank.
There is no option of mentioning the only turnover because if turnover is mentioned then the tax also have to show otherwise the data will show error “once turnover has been shown then tax amounts cannot be left blank”.
I just want to know that I am GTA registered in 2 states, in one I am following the rule of reverse charge and my clients are paying the reverse charge but in another state. I am charging them GST @12% as some clients do not go in reverse charge method.
I just want to confirm that I can do this or am I doing anything wrong.
We take the legal service from an unregistered law firm and accordingly paid RCM on it and next month we claim ITC on it. My question is that where to show this in GSTR 2 (when applicable).
My second question is that we take transport service from GTA and paid RCM on it but how to claim ITC on it.
kindly provide info
thankyou
You need to show it in Table No 4 of GSTR-2. Services received from GTA- ITC can be claimed in the same month in which tax under RCM is paid.
A registered dealer under Automobile trade is also providing insurance services and in turn, he receives Insurance C omission from General Insurance Companies which is Liable under Reverse Charge U/s 9(3), while Filling his monthly 3B return how should he report Turnover under RCM and tax paid thereon.
Further in another case March 3B return was wrongly filled as NIL whereas there was tax liability, the same was detected and sumotto NET TAX (Tax Liability as reduced by ITC) was paid by challan since it is a Financial year change can we reduce the extra Credit in Cash Ledger by showing excess TAX Liability in April Month further do we need to increase the Turnover also in 3B of April my understanding is that we should only increase the Net Liability (CGST/SGST & IGST) without changing turnover of the April Month .
You need to show the taxable amount under RCM in Table 3.1 point a) outward taxable supplies, without the GST amount. In answer to your second query, ensure to file correct GSTR-1 for the month of March. Your GSTR-3B will be rectified during the match-mismatch process by the
department. You can increase the tax liability of April Month, but then you will be required to rectify GSTR-3B of April month also during match-mismatch.
Please tell me in the following case whether SGST and CGST will be applicable or IGST, under RCM
Our company have received GTA services from an unregistered person, who have business setup in the same state, for the delivery of goods from other states
for e:g:
Our company operates from Punjab, GTA unregistered person has also business setup in PUNJAB, Supplier of our goods: from Delhi or any other state, GTA servicer provider delivered goods from Delhi to Punjab.
Mam, I have one more doubt, I’m registered person in Karnataka someone provides GTA Service to our company from other states. We need to pay GST under RCM. My question is In Case Of GTA service provider is not registered under GST we need pay GST as IGST Or CGST & SGST? If register under GST What We Can Do?
When is IGST under RCM applicable(Give Me some examples)?
It depends on the place of supply whether IGST is applicable or CGST & SGST.
The place of supply of services by way of transportation of goods to–
(a) a registered person shall be the location of such person
(b) a person other than a registered person shall be the location at which such goods are handed over for their transportation.
In your case, IGST will be applicable.
Sir,
Thanks for your clarification regarding my previous doubt. Now I have another doubt we are providing works contract to state govt entity as per GST law output tax shall be paid by us but govt paid us after deducting GSTDS how to deal with it.
Dear Sir,
I have one question in my mind, as I am a manpower provider and paying 18 % GST, but not getting any benefit, while client is not doing our payment on time, why they don’t submit their GST directly, as they are getting refund and if manpower supplier not paying GST on time he has to pay heavy penalty.
I will be waiting for the quick response.
Thanks and regard
Tara Chandra
Sir,
My query relating to Works Contract, We are providing various contracts services to various persons and also we are the main contractors, giving some contracts to subcontractors they are unregistered is there any requirement for paying GST under RCM basis. we are registered GST holders. please kindly provide how to deal with these sub contacts.
Supplies from unregistered subcontractors would fall under RCM scope. But RCM on such transaction is deferred as of now so currently, no GST is applicable.
Thank you sir,
Dear sir
I have availed (taken) wrong IGST RCM Credit Rs.2500/- in the month of April 2018. Please give suggestion How to correct it in May 2018 GSTR 3B by making cash payment through IGST RCM with interest is possible.
It is better to pay the wrong ITC taken now to prevent any future penal consequences.
How?
Though IGST RCM Cash Payment or Regular IGST Cash payment with interest.
The challan is same for both RCM tax and normal tax.
Sir,
We run a Reliance Petrol Pump. Fright on HSD and Motor Spirit ( Petrol ) paid by us and GTA company 9 who hire truck from another transporter ) charge GST and comment on freight bill that GST paid by the recipient. Can We liable for paid GST on freight under RCM and claim ITC ( Goods not covered under GST).
If we paid GST than Can we claim ITC and apply same for the refund.
Request for Guide. Thanks
which type of RCM (CGST-SGST or IGST) on supply from Delhi to Uttarakhand?
As service provider is at Delhi and service recipient is registered under another state so CGST-SGST will be applicable.
And which type would be the RCM @5% payable on Freight for Transport Service from Tamil Nadu to Uttar Pradesh?
Dear Chanchal,
Lots of confusion in RCM…..!
Have Received Goods through Registered Transport and Paid Freight of Rs.10000/-
My request is to provide all the related accounting entries- right from paying freight to claiming ITC. (In Detail)
That would be really helpful
Let’s assume the transporter is registered in another state.
Freight Inwards A/c Dr. 10,000
ITC of Reverse Charge (IGST) A/c Dr. 500
To Bank A/c 10,000
To GST payable on Reverse Charge (IGST) A/c 500
ITC of Reverse Charge (IGST) A/c Dr. 500
To ITC of IGST A/c 500
NOTE: This entry is only for simplification of taking ITC. You may not pass this as well.
GST payable on Reverse Charge (IGST) A/c 500
To Bank A/c 500
IGST/CGST/SGST/ payable A/c Dr. 500
To ITC of IGST A/c 500
Sir, please explain bout RCM in GTA services. I am registered person in Haryana and sell my goods to Rajasthan (F.o.r) and hire registered GTA & paid the freight. Now, what should be the consequences? Is RCM @5% applicable or otherwise? Whether non-registration of GTA makes any difference.
Yes, RCM is applicable in your case. If GTA is unregistered then provisions as applicable in case of supplies from unregistered person applies.
Please clarify, whether RCM is applicable today on expenses other than Freight and advocate fees e.g. travelling expenses, etc.
Service notified under given pdf is only covered under RCM. http://www.cbec.gov.in/resources//htdocs-cbec/gst/list-of-services-under-reverse-charge-2.pdf
We are registered under GST based in M.P. We purchased goods from Maharashtra and send to Tamilnadu on FOR basis (Freight paid by us). through registered GTA of Maharashtra. My question is that whether we have to pay IGST or CGST+SGST under reverse charge mechanism.
IGST would be applicable.
Hi,
I am an NRI and non-citizen of India, having commercial rental property in India. I don’t have the residence in India. I have income tax department PAN and India bank NRO account, both with my foreign address. I pay income tax. This year my total rent is going to exceed the threshold for GST.
I was told that I don’t need to register for GST but Tenant should pay the GST on rent using RCM. Is this correct?
Thanks.
SM.
Yes, as the service provider is in non-taxable territory, so RCM will be applicable and tenant need to pay the tax.
Thank you for the clarification.
1) How to make sure that the GST on rent is paid by the tenant in this case. Is there any document I should ask them showing the tax paid detail for reference?
2) Please let me know how to respond to someone saying, “Since the rental building is in India (taxable territory), its the responsibility of the landlord to collect GST on rent and pay it to the GST department.”
Dear Chanchal jee
I am a trader of goods having 5% GST rate. I paid to transport charges on regular basis on the purchase of goods above Rs. 5000.00 to different unregistered persons or a single person up to Rs. 15,00,000.00 and deduct TDS. Liable for Payment of RCM or not?
I am doing cloth business & share trading in equities & future options & had always shown profit or loss as bussiness income or business loss last 13 years & had always shown expenses such as stt, turn over tax, other charges, brokerage seperate in profit & loss a/c, Now as I am registered in Gst with my legal name & Pan no, I have given my GSTIN to my broker & he ( my broker ) have filled his GSTR1 in which he had shown my bills. & I can check them in my GSTR2
So as I am always showing share profit & loss as business income or loss & showing the charges & brokerage separately in my P&L a/c, can I take the input GST credit of this share trading business & adjust against my output Gst of other business of same GSTIN ( please note that I am not a stock broker & doing trading of shares)
Thanks
Regards
Rajesh Jain
Since both the business verticals are different, you cannot adjust ITC of share trading business with output tax liability of clothing business.
We paid Rs.10000/- to a transport company (unregistered) against Freight Charges. We paid Rs.500/- (5%) of GST under RCM and deposit it in the government account. We shown this figure in Form GSTR 3B [3.1(d) inward supply (liable to reverse charges)] and also claimed an ITC of same in Form GSTR 3B [4(A)(3) Inward supplies liable to reverse charge (other than 1 & 2 above).
We are doing right or not?
one more question is that there are several freight charges paid during the month. We are generating RCM invoice to each transporter separate. What should I do in this case?
The treatment done by you is correct in case the transport company is GTA. RCM invoice would be generated separately only for each transporter.
What if Cash Payment made in ISD Registrations? What documents required to file the refund application?
Please clarify your query.
We are a Warehouse service provider registered under GST and charge GST under FCM (Forward Charge Method). We also provide GTA service to customers and follow the RCM (Reverse Charge Method). Do we need to take separate registration for GTA and are we correct in following the RCM for GTA services?
Request you to suggest.
Thanks, & regard,
Varun Monga
If you treat GTA as a different business vertical then you need to take different registration for each type of services you provide.
Hello Chanchal Agrawal,
What is current scenario after 31st March 2018 for RCM on GTA? What about local transportation (NON-GTA / unregistered dealer ) where we have to pay anywhere between 500 to 2000 rupees per month for local transport who is unregistered only for services to transport to and fro from our workshop. Do we need to pay RCM on this amount as in few cases the amount exceeds 750 rupees?
RCM provision will only attract on services provided by GTA, in all other cases, if the service provider is registered then only tax liability will arise.
Hi,
We have input tax carried forward from Jan Now I got an invoice from our lawyer 100000/- do I need to pay tax for this or I can adjust from the input carried forward. Please do let me the what I have to do in this case. Awaiting for your reply, please
G.S.T. on lawyer fees is to be paid under reverse charge mechanism by the recipient. R.C.M. liability can only be settled in cash not through ITC.
We have a manufacturing unit and we produce nil rated products. We pay CGST & SGST on the purchase of packing material and other repair goods.
Can we claim ITC on above-said goods?
We have also paid RCM for legal and professional services. Can we claim ITC for that?
1. As these are not covered by section 17(5) of CGST act, so you can claim ITC for that but as such you are producing goods attracting nil tax rate so you can claim the refund of ITC.
2. Yes, you can claim it, procedure same as above.
I have a query that can i claim input tax paid at the time of purchase on the month of April-2018 can set off without tax liability for the month of April-2018 and one more query that up to where RCM on expenses extended is RCM on GTA also extended and is liable to pay GST on purchase made from unregistered dealer in case invoice value exceeds 5000.
Hello Madam,
I am trying to upload GSTR-1 in Q basis but both of problem in my form 3B month of March 18.
1.purchase invoice advocate fee paid but no RCM paid in a transaction in the same month. Please guide what to do?
Pay RCM on advocate fee now and claim ITC in the GSTR-3B you file next. GSTR-1 would contain details of your outward supplies only.
IS GST applicable on advance payment to a lawyer?
Yes as the only advance paid for goods are not attract GST till next notification so advance paid for services will attract GST.
PURCHASE BILL FOR THE MONTH OF JULY, AUGUST, AND SEPTEMBER NOT ENTERED IN THE BOOKS TILL NOW. PLZ GUIDE WHAT TO DO? WHEN WE CAN CLAIM ITC OF THESE BILLS AND IN WHICH MONTH WE CAN ENTER THESE BILLS.
PLZZ REPLY???
As far as the ITC is concerned, you can take it in the next GSTR-3B you will be filing. GSTR-2 is deferred as of now. Ensure entering correct details whenever GSTR-2 is opened by the portal.
Is RCM paid claimed ITC in the same month or next month?
Travelling expense -international for the business purpose whether ITC available or not?
Yes, you can claim ITC in the same month.
Kindly confirm we have to pay GST under RCM to GTA or not as on date.
GTA services are covered under RCM provisions and you have to pay tax under RCM.
FEBRUARY REVERSE CHARGE NOT DEPOSITED TILL NOW IS THERE ANY INERTEST OR PENALTY ON REVERSE CHARGE AMT. IF I DEPOSIT TODAY
Interest @ 18% p.a. to be calculated on days basis would be charged on tax amount.
IS INTEREST CALCULATED FROM 21 MARCH TO 19 APRIL? PLEASE GUIDE.
Yes
We have supplied the goods to our vendor through registered GTA and raised the invoice to our client for Transportation charges and charge GST on it and also filed return against same. We have not paid the GST under RCM. So now what can we do? We need to pay RCM or not. Please advice.
In case of GTA services, whoever pays to GTA will be considered as service recipient and GTA also raises bill of supply in that case, so you have to pay tax under RCM for GTA services availed by your client.
Dear Madam,
Need your urgent views on below:-
We are the service provider and we have both services like Taxable and exempted. We are paying rent for the premises which is being used for generation of taxable and exempted services. We also paid GST on rent of premises which is being used for both the services.
It is regarding the ITC of GST paid on rent, we have calculated the turnover ratio monthly and made the working and we are going to avail the same on March 18 return.
Please correct us if we are doing wrong and treatment in the GST return may also be advised.
Yes, you have to divide the total ITC on the basis of taxable turnover and exempt turnover.
We are a registered in GST & We paid shop rent for July-march 90000/- to unregistered person as on 31.03.18. Can we liable to take pay tax under RCM?
You will be liable to pay tax under RCM for the period 01.07.2017 to 13.10.2017. After that RCM on supplies from unregistered person has been suspended. You can take the credit of the tax paid under RCM.
I have used services of a GST registered Transporter and he has raised Invoice stating RCM applicable?
1) What will be the GST Rate
2) Can i claim the GST amount which I will be paying
(i) 5% without ITC
(ii) Yes, you can avail the ITC of GST paid under RCM
Dear Madam,
I have paid GST under RCM in the month of July, August, Sep & October (up to 13.10.17) but still not claimed ITC, Can I take ITC in the month of March 18 Return.
Yes, you can avail input tax credit in the month of March for the tax paid under reverse charge earlier.
Dear Mam
Kindly advise on following things.
Scenario I :
We are registered dealer based in Mumbai availing services of a registered GTA based in Delhi for transportation of stock from Mumbai to Delhi. The final destination of stock is Delhi and to a registered a dealer. Transportation charges will be paid by us. Please advise whether we should deposit IGST or CGST & SGST?
Scenario 2 :
We are registered dealer based in Mumbai availing services of a registered GTA based in Mumbai for transportation of stock from Mumbai to Delhi. The final destination of stock is Delhi and to a registered a dealer. Transportation charges will be paid by us. Please advise whether we should deposit IGST or CGST & SGST?
As freight will be paid by you, and GTA is also registered under different state, so IGST will be applicable.
If a registered GTA raising bill to another registered GTA for freight.
1. Whether RCM applicable?
2. What will be the GST impact?
Please guide me.
Thanks
if you are taking services of GTA on rent, then it is covered under the exemption list.
Services provided to a GTA by way of giving on hire motor vehicles for transportation of goods is exempt under GST. Otherwise, it will be covered under RCM.
Our company is unregistered under GST. We want to pay legal fees to an advocate who is also unregistered? Do we need to register under GST?
Please suggest if the payment is exceeded Rs. 5000 or above rs.5000/-
please also mention the section number.
If by wrongly RCM on GTA has not been paid is there any interest provision
and
if GTA IS UNREGISTERED IS THERE ANY RCM PROVISION?
If a GTA received another GTA service then what is GST provision applicable? whether in this case reverse charge applicable
If both are unregistered then no tax liability will arise but if either one is registered, RCM provisions will apply.
Dear Chanchal,
I have made an Inter-State Purchase in the month of July and the Goods were received by me in August through Registered Transport. Complete Detail is mentioned below:
Date of Purchase Invoice- 19/07/2017
Goods Received and Transport Charges Paid- 12/08/2017. Transport Charges Paid is liable for RCM.
Purchase shown/entered by me (Purchaser)- 12/08/2017
RCM is shown in GSTR-3B in the next month (Before 20th September), for the Month of August (Inward Supplies Liable to Reverse Charge Column of GSTR-3B).
The tax of Rupees 226/- Paid (5% of 4527) as Rupees 113/- each of CGST and SGST in Cash, on 19/09/2017 and Filed GSTR-3B. Claimed ITC of Rupees 226/- of RCM in the same Return i.e. GSTR-3B, for the month of August
My Questions are:-
1) Have I claimed the ITC on RCM correctly? I mean to say Goods received and Transport Charges paid by me in August and Purchase is also shown in August, whereas the Goods were Invoiced and Dispatched in July. ITC claim of RCM has to be in which month’s return?
2) Since it was an Inter-State Purchase (Tamil Nadu to Uttar Pradesh), is it correct that I have paid tax as CGST and SGST? The Transporter is Registered in 3rd Location, i.e. Kolkata.
I would request an early reply as today is 19th and tomorrow is the last date of filing GSTR-3B.
(1) Yes, the claim of ITC under RCM is correct in the month of August as according to the place of provision rules in case supply of goods is liable to RCM the liability to pay tax to arise on receipt of goods or date of entry in books of account whichever is earlier. As tax is paid in August credit to be claimed in August only.
(2) In case of an interstate purchase, IGST needs to be paid and not CGST and SGST.
Thanks a lot for treating my query, an urgent one.
1) I would like to re-mention, here, the matter is not of supply of Goods, but of Service taken by Registered Transport.
2) Can this be rectified, as I have committed this mistake of paying CGST & SGST instead of IGST, 4 times since July?
Dear Sir
I have a query. I am registered dealer in Delhi, I have supply goods Outside Delhi through transport freight value 30000/-, but I did not charge freight amt in bill during the time of supply, now what to do, should i have charge freight amt through debit/credit note, plz also confirm may i liable to charge GST on said amt to my client or not billing month Sep-17 freight Bill Date Mar-18
As freight charges have to be included in bill and GST rate of goods will be applied on that, so you have to issue a debit note.
Sir, We have a partnership firm we received purchase bill of services by (caterers or marriage hall ) by the registered supplier but we don’t have service tax registration, we have registration of GST, in that case, can we get an input tax credit.
if yes so what will be the entry we should pass. Please guide us.
Yes, the credit of GST on a supply of services by the registered dealer can be availed if registered under GST regime. For this, the entry for purchases should be:-
Purchases a/c Dr.
CGST/SGST/IGST credit a/c Dr.
To Supplier a/c Cr.
Sir, can you please clarify the Input tax credit for capital goods purchased can be claimed in one go in next month of purchases?
Yes you can.
Our company is registered under GST and taking services of GTA to deliver material interstate and intrastate. May I request you to please confirm in case of Interstate (Outside the State) delivery, we need to pay IGST Or CGST/SGST under reverse charge mechanism?
You have to pay CGST/SGST under reverse charge.
Thanks for the reply.
I want more clarity on the issue: What would be the kind of GST (whether IGST or CGST/SGST) applicable under RCM in following cases of payment to Transporter:
•Interstate procurement of goods ( from Delhi to Kanpur). Delivery at Kanpur works and transporter is registered in State of Delhi and freight paid by us.
•Interstate delivery of Goods from Kanpur to Chennai. Delivery at Chennai and transporter is registered in Kanpur and freight paid by us.
Place of supply in case of supply by the registered person is “registered place of the recipient”.
Thanks for reply
But I am still confused. I understand from your reply in case transporter is registered under GST in other state and recipient of services is in other states hence service receiver needs to pay IGST under RCM.
And if transporter and service recipient both are in the same state hence CGST/SGST needs to be discharged by the service recipient. Please correct if I am wrong.
Yes agreed
GST helpline said that no need to pay GST on freight from unregistered. GTA while CA said you have to pay?
What should I do?
please reply.
As per law, if unregistered GTA is providing services to an unregistered dealer then dealer does not need to pay tax under RCM.
whether I can get ITC paid Under RCM? Where it will reflect in GSTR-3B?
Yes, you can claim ITC and you can show it in under column “Inward supplies liable to reverse charge” of Eligible ITC column in GSTR-3B.
A Director gets sitting fees which is is chargeable on RCM basis by the Company. If the Director is registered under GST for other business, does he have to raise an invoice on the Company. If yes then in GST3B where is entry made I.e. under section 3 would it be a b c d or e. What happens when R1 is filed?
As services provided by Director is specifically covered under RCM , so only Bill of supply will be issued in that case.
If GTA is registered and collects GST in the Invoice whether the recipient of service who is a registered under GST has to pay GST on reverse charge? If no the recipient can claim input tax credit on GST charged by GTA.
If I have received any services from out of the country (service amount in EURO) and I have pay rupee by credit card but I don’t understand that I have no invoice received for this service then how to pay GST and how to raise an invoice for this service.
Please suggest.
If any sale made by GTA Like Scrap (Tyre & Spare Part) are Taxable for GST? if all sale of GTA covers Under RCM Base & GTA Registered Under GST.
if Taxable Rate of Tax?
My client is Registered under GST. He has received goods Transportation services from Any Trucks / Tractors and paid through vouchers. He is C& F and issued an invoice to the company for Goods Transportation Charge.
Now, what is his liability so far as he has paid through voucher and if liable to pay GST can he claim ITC? Company to which he has to raise bill is ready to pay GST under RCM.
Kindly guide me in this regards.
In case of GTA service, the tax has to be paid under reverse charge.
The service provider is out of India and recipient in India but service provided in out of India. (Service provide from Outside India to place of receipt outside India and billed send to India) Can we liable to pay Tax in RCM?
Place of supply shall be the location of the service recipient since it is an international transaction. accordingly, import provisions apply.
I have registered in composition scheme, I have purchased from URD in another state, I am ready to pay tax through RCM, but the law states that URD can’t sell goods in other states irrespective of his turnover. How you view this scenario? Is this effect to both supplier and me?please …
Yes, in case of an interstate transaction, composition scheme can be opted for.
SIR,
My dealer goods purchased from out of state. the above goods registered lorry transporter charges is 95000/- payable, on transport charges under reverse charge pay tax @5% on cgst+sgst or IGST?
Yes. in case of GTA tax has to be paid under reverse charge. In case the place of business of the transporter is within the state then CGST+SGST is applicable otherwise IGST is applicable.
I have not paid RCM on Freight charges from July to till date, Can I pay now and availed input credit?
Yes, you can pay the tax with interest @ 18% p.a. and can avail the ITC from the next month of payment.
Sir, I am a regd. dealer but my all purchases were from URD for the month of Aug, 17, then I will have to pay RCM, if I pay RCM against URD Purchases, then I can take ITC next month Sep’17, which amount pay against RCM and adjust output tax sir please tell me detail.
You can include it in output tax liabilities under the head “inwards supplies liable to reverse charge” and thereafter may take credit of the same under “eligibility ITC column” This amount cannot be adjusted against other ITC available and has to be deposited through challan only.
Hi, How to raise the invoice RCM?
You have to issue tax invoice mentioning the invoice as invoice under RCM.
Sir, August month reverse charge amount deposit to GST account but this amount can’t take under eligible ITC, please tell the solution for this problem.
You can take input tax credit if you have paid tax under reverse charge.
If we have paid official filing fees in England and we are reimbursing the same to the consultant on the cost basis. Are we supposed to pay GST on RCM in this case?
Hello Maam
I am Working in the manufacturing industry. Please guide on the following issue.
We procure material under advance license and we apply for license closing after despatch of finished goods. When a license is ratified, any quantity which is excess procured under license is subject to payment of customs duty like BCD, CVD and SAD etc.
We have licenses of 2014 wherein we have paid duty as mentioned above on Nov 17. How can we account CVD and SAD which are eligible duties either as ITC or refund
Sir, SINCE RCM ON GTA, has not been postponed in 22nd GST council meeting, WE HAVE TO PAY GST ON GTA SERVICES under RCM. Could you please let us know the rate of GST for taking ITC on GTA services.
Rate of GST on GTA is 5% (if GTA don’t want to avail ITC on input services) and 12% (if GTA want to avail ITC on input services)
Madam,
We are service receiver-GTA in not charging any GST in his bill. So we have to pay the GST on RCM basis. Then we want to pay the GST and take the ITC also. At this juncture what % GST we have to pay to avail ITC on payment of GST on GTA services.
As GTA services are covered under RCM, so service receiver needs to pay the tax @ 5% and also he can avail the ITC for the same in the next month of payment.
Hi, Is RCM applicable on foreign remittance (commission)?
Yes, it is covered under RCM.
I am a travel agent in Mumbai dealing in Flight Booking, Hotel and Packages from the travel operator From Haryana. Airlines are charging GST to the Customers, I am given commission from the travel operator. I raise invoice with Travel operator in the month end for IGST RCM..and I raised on 4th Jan.2018
Also, I do not keep any markup or processing charges to customers.All invoices are below Rs.250000.GST B2C is nil to non-register dealer
My Question is: How to file GSTR 1?
B2B if I file return for December filling all details of supplier GST no.ect, the date on which I have raised Invoice falls outside Date i.e 4th Jan.2018
Need your suggestions.
Thanks and Regards
As you have raised an invoice in the month of January 2018 you need to show this invoice under GSTR-1 for January month only.
Hello Ma’am,
I have received GTA services from a registered GTA in Nov’17. I filed the Reverse Charge through GSTR-3B earlier. Do I (as a receiver) need to make an entry in my GSTR-1 of Nov’17?
As GSTR-1 is sales return, no invoices related to purchase will be entered.
Usually, I am furnishing the rent (paid) based on reverse charge mechanism @ 18% taxable for Rs. 10,000. It has been stopped 13.10.2017 onwards. Is it required to mention the rent amount Rs.10,000 in GSTR-3B (either in exempted inward supply or somewhere other)?
Rent amount is not required to be specified in GSTR 3B.
Is reverse charge on Rent paid to an Unregistered person is still applicable after 13.10.2017? Do I need to pay GST under Reverse charge if am paying rent to an unregistered person? Please clarify.
RCM provisions related to unregistered person has been on hold until 30/06/2018.
Dear Sir,
Is reverse charge on receipt of advocate/legal fee is still applicable post 15th November 17 under GST Regime?
Please revert..
Thanks
Yes, since the reverse charge is suspended only for goods purchased from unregistered dealers. so it continues to be applicable on services.
Sir/Madam kindly advice for my two problems
1) my unregistered transporters office is in Kolkata he raised me a bill for transport service of Mumbai to Nasik, under RCM which tax, I have to pay IGST OR GCST+ SGST?
2) we are mfg co. we signed work contract, right from a supply of pipes, installation & commissioning inclusive of all Taxes, from my suppliers’ premises we supplied the pipes to that work site, my supplier raised GST invoice mentioning buyers name & delivered the material to our work site (i.e.MIDC site End User). as a buyer should we also raise GST invoice in the name of MIDC? & pay tax at the time of filing return?
Thanks
1) If service receiver is registered, then place of supply will be the place of such registered person. So
in your case, CGST+SGST will be levied.
2) Works contractor are liable to pay 18% GST (with no ITC) on all outward supplies.
I think mam in the second case ITC can claim because this service is different from construction from immovable property. if I am wrong please let me confirm.
Yes agreed, On a works contract, ITC will not be available for the construction of immovable property (other than plant and machinery).
I had paid RCM for the Sept 17 on Oct 17 now can I claim ITC on the month of Dec,17
Yes, you can avail the ITC for the same, subject to credit available in your credit ledger.
Hi, Please help someone where should I show RCM details in Return?
Dear Sir, I have filed GSTR-1 and put the wrong GST no. of party please advice me how to correct this as the purchase is demanding to correct this please advise.
You can make the correction while filing GSTR-1 of the succeeding month.
Banking company pay RCM in the month of August, in September month he takes full credit of tax paid under RCM in August month or he takes 50% amount of Tax paid under RCM.
Banks are required to reverse their 50% ITC available on inputs, inputs services and capital goods.
Dear Sir,
I am a registered GTA, and I have issued a taxable invoice to my customer under RCM. The tax is to be paid by the service receiver. So, while filing my GSTR-3B Return, where would I have to show my invoice amount. As well as I have to file the same in GSTR-1 also ??
In GSTR-1 you have to show it in the 4B column of a B2B section.
You Just need to file nil return. No need to show invoice value.
As RCM exempted till 31.03.2018 while filing GSTR 3B November return where the amount I have paid to an unregistered dealer to be shown. please guide. In my case, i have paid office rent to unregistered dealer Rs.45000.
Please reply. Where should the amount (office rent) I have paid to an unregistered dealer to be shown on November GSTR 3B?
As RCM provision are withheld, so now there is no tax liability arises in case of service received from an unregistered dealer.
I pay Rs.45000 rent to an unregistered dealer for my office. Where should I have to show this amount in GSTR 3B?
RCM for the period from 1/7/2017 to 13/10/2017 to be paid in December – will I get input credit? – If yes for which month
Tax liabilities are to be discharged monthly while filing the GSTR-3B for the concerned month and you can avail the credit for the same just after paying it in cash.
GST paid on reverse charge for availing GTA services (Regd). In which part of GSTR 3B the Input Tax Credit be shown – whether under Part A of ITC or Part B under All Other ITCs?
You have to show it under “Inward supplies liable to reverse charge” column
If rent is being paid from Chandigarh for an office in Delhi, will it be covered under IGST or CGST and SGST in case of RCM?
As the rented property is in Delhi, so the place of provision will be at the place of property. If the service provider is of the same state where property persists, then CGST+SGST will be applicable and in other cases, CGST will be applicable.
Sir, I availed GTA (registered) services for Rs.1400/- from Mumbai to Goa. Do I have to pay IGST Rs.70/- (@5%) and can I avail ITC for the same?
You can take the ITC of GST paid on GTA services availed.
Can anyone give me the right advice, please! We are mfg co. Delivering material to our customer through a local tempo {Unregistered} he raise bill to us & we paid 5% (sgst+cgst2.5%) RCM on bill amount till (Sept- Return). We got it ITC & we utilized also, but when we paid RCM in November( for OCT. Return) on same tempo bill this time ITC is not showing in ITC ledger in DEC. Month. I want to know what is the new rule for RCM credit (Tempo Charges) & can we claim for our Nov- return & can be utilized?
For your more info for RCM payment, we generated separate challan every time.
RCM on supplies from unregistered dealers have been suspended from 13.10.2017 up to 31.03.2017. so no RCM liability arises from 13.10.2017 with respect to supplies from unregistered dealers.
Ok Thanks, Sir, did u mean, if we already paid Rcm in Nov-14.11.17 (For Octobers Liability) against unregistered (GTA) bill, we cant claim & utilized for Dec-17’s Liability? in very short we lose our money because of lack of knowledge? correct?
Waiting for your response.
Regards
Since registration is not mandatory for GTA service provider in case he is providing only services liable to reverse charge, and in your case, as you have paid tax under RCM, you can avail the credit for same in the next month and if some problem persists, you can contact to the department.
Thanks, Sir, for your valuable advice & as well as time also. This is a big relief to me. we will contact GST office also.
I hope your corporation will continue for small taxpayers, who unable to pay consultancy fees.
I pay Rs.45000 rent to an unregistered dealer monthly for my office. Where should I have to show this amount in GSTR 3B as RCM is suspended?
Dear Sir, Can ITC is eligible for Furniture purchased after July 2017 used for the office of Business.
Kindly suggest at the earliest. Please send rule and low link
Yes, ITC can be claimed for the office furniture.
Thanks A lot Sir
Hi, Our proprietorship business is paying professional fees 50k per month to an unregistered person in the same state. Are we liable to pay GST for the reverse charge or it is postponed until 31/03/2018??
Kindly Reply
All the provisions related to supplies from an unregistered dealer are kept on hold from 13/10/2017 to 31/03/2018 by CBEC.
We are registered organisation under GST. We want to purchase “Trophy” amounting to Rs. 50,000/- above from an unregistered person. In that case is GST under RCM is payable by us? If yes, please send the rate of GST on it. Also, can we take the ITC on that? Please help.
RCM on purchases from an unregistered dealer has been suspended up to 30.03.2018. so no GST is payable.
Thanks…
Sir/Madam, we made an agreement with a clearing and forwarding agent for clearing Railway wagon (Rice Bran-Loading and unloading from railway wagon) and transportation to our warehouse at the prescribed rate. GST on Transportation charges and clearing charges paid through Reverse Charge Mechanism (on the basis of GTA) at the rate of 5% as per Notification No. 13/2017- Central Tax (Rate) dtd 28.06.2017, but service provider demanding 18% of GST on transportation and clearing charges in their invoice. Kindly advise us on whether clearing charges come under 18% tax bracket or it comes under the GTA purview with reverse charge liability at the rate of 5%.
Regards
Prasanth
We paid RCM for the month of July 17 on August 17. Now when we take an input of it in the month of July 17 or August 17? We generate RCM self-invoice on 31st July 17, so when we should enter it on GSTR 2 of July 17 or August 17 for taking input credit.
Shortly RCM paid for july17, in which month to show in GST3B & GSTR 2?
Credit can be claimed in the month of August. but the details have to be shown in GSTR 2 in July month.
Thanks for such a nice Article, great help to know RCM.
Hello, I have read the comments sections but still have some doubts, can you please help and clarify,
1) Goods i.e, business activity goods in my case sarees, if purchased from weavers who were unregistered were liable for RCM which we have paid since July. Do all goods and services Accept those in 9(3) come under 9(4)? by virtue of which all supplies of goods received from URD are not liable for reverse charge post 13th Oct till 31 March 2018.
2) we get goods from other states, wherein the transport L R copy if from a different state ? while paying the amount for the transport charges here the invoice we receive is from the GTA are from local office with GST number mentioned but GST not collected. Am I Liable for Reverse Charge?
3) I heard somewhere that if the GTA invoice is below 750 per consignment we are not liable for GST RCM, Is it True?
4) I have paid rent to an unregistered person, Earlier we paid GST under RCM, what about now?
5) Job work was done by an unregistered person, earlier paid under RCM, what to do now ? in my case it is saree finishing, printing, embroidery charges etc.
Awaiting your reply, Thanks in Advance
I am a registered GST dealer. I have paid Advance to Supplier for the purchase of machinery. Under RCM, am I liable to pay GST to Govt. or my Machinery supplier is liable to pay GST to Govt. on Advance?
GST on advance payment is to be paid by the supplier only.
Machinery supplier is to collect Tax in Advance and to pay. Buyer is not required to pay Tax under RCM. But presently this provision is under suspension.
CAN A GTA GO FOR BOTH FORWARD AND REVERSE CHARGE SIMULTANEOUSLY IN SAME FINANCIAL YEAR
As GTA services are covered under RCM and as per latest decisions are taken by GST council, RCM on unregistered dealers withheld till 31/03/2016, so GTA will always be covered under RCM.
WE ARE PAYING GUEST HOUSE RENT OF Rs.12500/-pm WHICH IS USING FOR COMPANY GUEST PURPOSE. IS IT REQUIRED TO PAY GST UNDER RCM?
Rent services are not covered under RCM and also as per latest decisions of GST council, RCM provisions related to supply from unregistered persons are kept on hold till 31/03/2018. So in this case service provider liable to pay tax.
We are in the business of constructing roads(construction business), is ITC eligible for Inputs OR not?
Sir, RCM on GTA now applicable..? if applicable, can be avail the RCM paid for GTA on next month as input..?
Dear Sir/Madam,
We are GTA, please confirm under GST regime whether we can alter our invoice date for billing to our customers, few of our customers are demanding for the date change of our invoice that was already generated during the month of August, since due to delay in receiving POD we were unable to submit our invoice on the same month.
Kindly advise
Sir, I am a registered composition dealer and have two query on GTA services:
1. Some GTA are registered but are not charging GST on their invoices? So whether in this case do we need to pay GST under RCM? what would be the rate? Whether ITC would be available? And whether the limit of 5000 is applicable?
2. same questions as mentioned above but with respect to those GTAs who are not registered?
If GTA is registered then GST has to be paid under reverse charge mechanism. GTA should charge GST on the invoice issued. If GTA is not registered then no RCM liability arises from 13.10.2017 since RCM on supplies from unregistered persons have been suspended from 13.10.2017.
Dear sir/Madam,
In what section/provision/notification/circular/meeting says that (If GTA is registered then GST has to be paid under reverse charge mechanism). Please do needful to me.
Notification no. 13/2017-Central Tax (Rate) dated 28.06.2017 (sr.no.1) as amended by notification no. 22/2017-Central Tax (Rate) dated 22.08.2017.
SIR, AS RCM ON URD PURCHASE, IS POSTPONED FROM OCTOBER-17 NOW WHEN WE ARE FILLING GST 3B OF OCTOBER MONTH WHERE TO SHOW AMOUNT OF URD PURCHASE DONE AFTER 13/10/2017?
You need not show the purchase from an unregistered dealer for which RCM has been postponed.
Do we to pay GST on reverse charge till 12th Oct. There is not the official date for deferral off GST under reverse charge.
yes, reverse charge has been suspended from 13.10.2017. It will be applicable on the transactions effected before 13.10.2017.
Is there any specific column for showing the purchase from an unregistered dealer for which RCM has been postponed. Form GSTR 3B don’t have any specific column.
no, there is no such specific column to mention that.
Sir, Reverse charge is withheld up to 31-3-2018. Is it applicable to Pvt Ltd company also?
The only reverse charge on supplies from an unregistered dealer has been suspended up to 31.03.2018. on other services, it continues to be applicable.
Sir is deferment also applicable to previous purchases made from an unregistered supplier before the date of this notification?
And sir how the composition dealer will issue the self invoice to pay the reverse charge as he can’t charge GST on his invoice?
Is Reverse charge on GTA payable on CGST & SGST only? Is not It Payable on IGST after Suspension (13.10.2017)?
no, it has to be payable on interstate supply also.
A Company X is registered in Delhi (with GSTIN No.) and has Branches / Operational Projects in 20 states each with their GSTIN Nos. The Regd Office of X enters into a central contract with GTA D registered in Kolkata (with GSTIN No.) for transportation of goods, from anywhere in India to anywhere in India, including its Branches and undertakes transportation of goods intra-state and interstate. The payments for transportation will be made by the Work Order placing branch of X. GTA D also has Branches in 23 States each with their GSTIN Nos. Against Work Orders placed by, say Ahmedabad Branch office of X for transportation of goods (a) from Bhuj to Ahmedabad and (b) from Agartala to Ahmedabad, and (c) from Ahmedabad to Trichy, the trucks are arranged by the respective Branch offices of GTA D and materials are transported. Can the different branch offices of GTA D raise Tax Invoice on the Work Order placing the branch of X or the Invoice needs to be raised only by the Regd Office of D? The GST payments will be on RCM. However, what will be the type of GST chargeable by D, i.e. IGST or CGST-SGST in each of the above 3 scenarios? Though the query is pretty long, will be beholden for a clear reply. Thank you.
As per provisions of place of supply, in case of transportation of goods by GTA to registered person place of supply will be the location of recipient, so as in your case payment is to be made by order placing branch and also the place of supply is location of recipient, so CGST and SGST will be applicable. As GTA also have registered at the place from which services are provided, they can make tax invoice by mentioning the place of supply and GSTN details of order placing the branch of X.
Please give me advice for Director Salary, Director Remuneration and how many Services is in GST RCM
Check on the given link: http://www.cbec.gov.in/resources//htdocs-cbec/gst/list-of-services-under-reverse-charge-2.pdf;jsessionid=C7642F8601C5197E2EBD81090446835F
Hello,
I am small time supplier selling online mainly numismatic coins/ notes, handicraft items. I buy mostly from individuals who are not dealers. As per the rule, RCM was admissible in case the purchase is more than Rs. 5000 in a single day. My purchases are less than 5000 on any given day and I mostly pay cash to them. Please clarify on the following points:
What all documents do I need to maintain for such purchases?
Also, I inherited some old coins/ notes from my parents as well as I collected from my childhood. How do I show it in my books of accounts for selling them?
Thank you.
As per decisions are taken on 22nd GST council, RCM provisions related to purchase from unregistered dealers are withheld till 31/03/2017.
HI. We have paid freight to a GTA of Rs.6900 for the month of July. The said GTA is unregistered but has issued a GC note…Now, as regards to RCM, I cannot update it in table 4A of GSTR 2(RCM supplies), because the GTA is unregistered…Now, where to show this freight expense from unregistered GTA in GSTR 2 so as to comply with the RCM provision?
You can show it in column 4B of GSTR-2
Hi,
If supplies/services are provided in the different state by vendors of the same state, that what will be applicable, IGST or CGST/SGST. e.g if Vendor of Maharashtra provides some services in Goa to the registered person in Maharashtra, the what should service provider charge the recipient of services, IGST or CGST/SGST.
If the service is provided at the fixed establishment at Goa than IGST will be applicable otherwise CGST/SGST will be applicable.
What is the definition of business entity as per GST ? Are schools providing education up to senior secondary are covered under the definition of business entity?
Dear sir, I have filed GSTR-1 and filled wrong GST number of party and hence party rejected this bill and showing in GSTR-1A. PLEASE ADVICE ME HOW TO CORRECT GST number. SHOULD I ACCEPT GSTR-1A OR REJECT. AS PARTY IS CORRECT AND BILL RELATED TO OTHER WITH THANKS
As you have filed wrong GST number of the party in GSTR 1 and party rejected the bill and showing in GSTR 1A but when the party will file GSTR 2 then the bill will get reflected in your GSTR 1A then you can accept that entry in GSTR 1A.
SIR, I have shown unregistered purchases of rs 200000 in July 3B. But how to show this amount in GSTR 2 i.e whole sum up the amount as shown in 3B or invoice wise 30-day invoices i.e bifurcated value of Rs 200000?
Our company employee went for official work at other state and made expenses for the hotel from an unregistered supplier and we paid directly vide NEFT to an unregistered supplier. Now the question is how we reflect in an account as the amount is liable to RCM of GST because transaction to an unregistered supplier to other states not possible.
The gstr-2 form has the last column of HSN detail but the system is not accepting exempted goods in HSN detail. Should I left exempted goods and feed only taxable goods detail HSN wise? with thanks
HSN details for exempted goods are not required.
If my GTA is unregistered and I have 300 transportation charges. Do I have to pay Reverse Charge?
Reverse charge mechanism on supplies from unregistered persons have been suspended until March 2018.
We have been paying Rent+GST to the registered landlord for our factory (registered business). Now that RCM is suspended, do we still have to pay rent + GST?
One of my friends is having a business the T.O of which is not likely to exceed Rs.20 lakhs.
Meanwhile, when he is billing his clients,
a> shall he bill in Bos or Invoice.
b> Shall the receiver of service pay GST on RCM basis.
c> If his T.O exceeds 20 lakhs in this year, shall he has to deposit GST on old bills also.
d> Shall he has to file his return quarterly?
Thanks ,
(RANJAN)
If a voluntary registration under GST is opted for then all the provisions as applicable on the person who is mandatorily required to obtain registration applies on the person who gets voluntary registration even if the turnover is less than the threshold limit. So tax invoice will be issued. Returns shall be filed on monthly basis.
Sir,
We have paid Freight Charges to Interstate GTA (Registered under GST) through NEFT in the month of July against their Consignment Note. They have not issued Tax Invoice and not uploaded details in their GSTR1. We have paid Tax under RCM. Please clarify where to show this transaction in GSTR 2 and whether we will add details under MISSING INVOICES.
You have to add under head “Inward supplies on which tax is to be paid on reverse charge” under GSTR 2. Yes, you can add details under “missing invoices”.
RCM ON GTA PAID INPUT CREDIT ON CONSIGNMENT DOCUMENT/INVOICE IF GTA
We made URD purchases during September and made direct exports of the purchased products by filing an LUT. How the URD purchases will be treated since no GST is paid on export of the same. Do we have to pay GST on reverse charge even when the same product is directly exported? please advice. thank you
As you have chosen the option of LUT, and as you have purchased from an unregistered dealer, you first need to pay the tax on purchase under RCM and then you can claim ITC of such tax.
But RCM is postponed. Then what would be done?
As per the latest decisions are taken under GST council meeting, RCM provisions related to an unregistered person are abolished till 31/03/2018, so now normal provisions will prevail i.e. seller needs to pay tax.
Dear Sir,
What is the tax percentage decided to pay as RCM for a rented property? Say, I’m paying Rs 20,000 as rent to an unregistered dealer, will I’ve to pay 5% or 18% of the rent as RCM?
Also, we receive goods from the suppliers wherein the supplier dispatches the goods through the transport by road, so we’ve to pay 5% or 18% on the freight charged by the transport agency?
Thanks
Dear Sir, I have paid GST on transport charges for July and Aug.In GSTR-2 wherein which I have to show transport charges and GST paid? I am registered dealer still RCM on transport charges is applicable or stopped till 31.3.2018.
You have to show the details of transport charges and GST paid under RCM in (Inward supplies received from registered person including reverse charge supplies) column under GSTR 2. The RCM provision for purchase from an unregistered dealer of more than Rs. 5000 has been postponed till 31.3.2018.
Sir, what rate of RCM is applicable on GTA?
5%
I have paid RCM in last month (August), can I claim last month paid ITC in this month payment (September).
Yes, you can use last month paid ITC in September.
Do we have a date of suspension of reverse charge? I mean do we have to pay GST on Reverse charge for the month of Sept 2017? Please let us know.
RCM provisions related to purchase from an unregistered person is abolished from 13/10/2017 till 31/03/2018.
Sir, Rent for the month of oct 2017 billed on 31-10-2017. Is there reverse charge applicable. Because of rent related to the whole month.
Since the bill has been raised on 31.10.2017, so the reverse charge is not applicable if the landlord is not registered.
Dear Sir,
Could you please explain us about the following situation as the well w.r.t reverse charge:
A construction company having contract payments exceeding INR 5,000/- in a day and we are deducting TDS thereon, the contractor being a un-registered person under the provisions of GST Law. Earlier we use to pay it on RCM basis as we are a registered dealer.
And our query is whether we are eligible to claim the relief granted by GST Council, that Payment under RCM basis has been suspended up to 31.03.2018?
Kindly give provide us with the solution.
Many thanks,
Bhaskar.
GST on supplies from unregistered persons have been suspended till 31.03.2018. thus you can claim relief under the said provision.
Dear Sir, Does it mean that whatever GST which we were supposed to pay under RCM will no longer be paid till 31 March 2018, In that case, what will be the position of GST paid under RCM on availing GTA (Transport) services plz clarify.
As RCM provisions are withdrawn till 31/03/2018, normal provisions will prevail, so the service provider needs to pay tax on services provided after 13/10/2017.
On which location Basis RCM calculated under GST Interstate Supplier (GTA)’s location or Place of Supply means IGST or SGST/CGST?
GST will be levied according to the place of supply.
Sir As per notification is given by govt for the abolishment of Rcm w.e.f from 13/10/2017….. I have received one bill of the guest house of oct month of Rs 10000/- …13 days RCM, I have to pay but balancing 17 days exp…where I have to book ..kindly guide me.
Till the withdrawal of RCM provisions receiver will need to pay tax but after that normal provisions for payment of tax will prevail i.e. service provider will pay the liability.
I have paid GST on transport charges paid to the unregistered transporter for the purchase of taxable goods from the interstate. Please advise me where I have to show this amount in GSTR-2 in which column. Date wise detail required or total is sufficient. Also, I have 50 bills of exempted purchase interstate. Should I have to enter the total of purchase or bill wise detail as same is not populated in GSTR-2
with thanks
As per 22nd meeting of GST council, RCM provisions related to purchase from unregistered dealers have been withdrawn till 31/03/2018.
But till now, you have to show each entry related to purchase from unregistered dealer invoice wise in column 4 of GSTR-2.
Dear Sir
Can a dealer whose aggregate turnover in a financial year does not exceed Rs. 1 crore* can opt for composition scheme for outdoor catering services.
Lakshman
Under GST, only restaurant services are eligible to apply for composition scheme, all other services required to get registered as a normal dealer, if T/o exceeds 20 lacs.
We are in pharma industry now we have to upload opening stock of 01/07/2017 in GST trans-1 how to feed the same in TRAN 1 can you guide us.
Regards
Dear Sir/Madam,
I have one complicated question, Please help me to solve it. We have get Freight service from a GTA in the month of June 2017, GTA gives L.R. (Bill) with Service Tax. We have taken and paid service tax in the month of June 2017. But did made payment to GTA against his service provided. Now in the month of September, we have paid his bill, but due to some issue our company is deducted some amount from his (GTA) Bill and issue Debit Note to GTA. So can you help me about that whether Debit Note should be issue with GST or without GST? Is it necessary to Issue Debit Note to GTA with GST if Bill is from the month of June 2017 (Service Tax Bill)?
Since you are registered under GST, the deduction in the amount will be treated as supply and normal GST will be applicable on the amount deducted since you have utilized the credit for the taxes paid in June or these would have been allowed to be carried forward in the current regime. So no debit note is required to be issued and GST is chargeable on the amount deducted as it will be treated as supply under GST.
Sir, We are from Builder Industry. Whether We have to make payment of 18% GST under Reverse charge mechanism for labour payment or not.
So since Reverse charge mechanism is suspended until 31/03/2018, Is this mean that a registered tenant who is paying rent to an unregistered landlord still have to pay 18% reverse charge on rent ???
No, since the reverse charge on supplies from an unregistered person has been suspended till 31.3.2018.
Dear Sir/ Madam,
As I here about earlier GST Council Meeting. Reverse Mechanism Charges (RCM) shall be postponed til 31.03.2018, is it true. Can you send me the notification link? If it is true then RCM on GTA, Insurance Agent, Legal Advisor (Advocate) etc. also postponed till 31.03.2018 or only Purchase/Supplies from Unregistered Dealer Postponed till 31.03.2018.
Please Reply Me Fast
http://www.cbec.gov.in/resources//htdocs-cbec/gst/20171006_PressRelease_22ndGSTCMeeting.pdf
Do we have a date of suspension of reverse charge?. I mean do we have to pay GST on Reverse charge for the month of Sept 2017? Please let us know.
notification is yet to release.
I also need an answer your question. if you find from anyone. because RCM postponed from 13.10.2017 through press notification and only on Purchase/Supplies from Unregistered Dealer. it means services except u/s 9(3) also not included or not postpone.
yes, RCM will be continued to be applicable on respective services.
Dear sir, I am a Proprietor. I have paid for following expenses,
1. Telephone Exps – Will it attract RCM as GST is already included in Bill?
2. Paid Rs.12000 in cash as Salary – will any GST provision will attract here?
3. Paid Electricity Exps: Will it attract RCM as GST is already included in Bill?
4. Paid for LIC premium an amount of Rs.15954 through cheque: Will any provision for GST be attracted?
One more thing to mention is that I’m Trader.
Thank You
RCM on supplies from an unregistered dealer have been suspended till 31.03.2018. Also, salary to an employee is not covered under supplies so no GST to be charged on salary.
Thnk u sir…..
SINCE, AS PER GST COUNCIL MEETING 4 DAYS, AGO REVERSE CHARGE MACHINIST IS SUSPENDED TILL 31-03-2018. i HAVEN’T SEEN ANY NOTIFICATION ON GSTN PORTAL FOR THE SAME. WHEN THIS CHANGE WILL TAKE PLACE. PLEASE LET ME UPDATE ON THIS. FURTHER AS ADVERTISE BY GOVERNMENT OF INDIA GST IS SIMPLE TAX, WHAT IS BENEFIT OF PUTING REVERSE CHARGE MECHANISM WHEN CREDIT OF ITC IS AVAILABLE.
THE COST OF ALL ELEMENT IS INCLUDING IN THE ASSESSABLE VALUE OF GOODS, THEN WHY USELESS BURDON ON BUSINESS.
The purpose is to increase tax compliances and prevent tax evasion. RCM will put more transparency in the tax compliance.
Sir, rent paid for commercial premises to unregister party, in new recommendations made by Gst Council, It is necessary to pay in RCM now.
no, it has been suspended till 31.03.2018
Dear Madam,
Now that RCM is put on suspension till 31/03/18, what exactly would be the treatment of supply from an unregistered vendor to the registered customer? On the face of it, looks like both don’t pay tax and government has decided to waive tax for such transactions till 31/03/18. But I really can’t believe it!
Regards,
Pre-gst also there was no reverse charge on purchases from an unregistered dealer. So as such there is no waiver. This has been suspended till 31.3.2018 so as to rethink on the issue.
very lucidly discussed on RCM. Thanks a lot
I am in a small manufacturing unit. Is it required that HS codes are required to file the return and claim RCM? If yes kindly give me the codes for the following
HSN codes are not required to be mentioned if the turnover is less than Rs. 1.5 crores. RCM has been abolished till March 2018.
Thanks a lot for the prompt response.
A recovery agent service provider covered under RCM and registered under GST. (As the tax liability is with service receiver). A registered person has to file GST return, is there is need to file the return by the service provider(recovery agent)? Please give step by step procedure how to show the outward supplies in GST returns.
Every registered person liable to file the return. In case of services covered under RCM, the service provider needs to mention only turnover amount and did not mention tax amount in return.
1.What are the expenses on which RCM is applicable?
2. We have paid tax on inward supplies from the unregistered dealer under reverse charge for the month of July, how can we claim that tax paid while filing the return for August?
Please read the blog thoroughly.
SIR, RS.5000/- LIMIT APPLICABLE FOR CASH PURCHASE OR TOTAL DAY PURCHASE FROM UNREGISTER DEALER?
In case purchases from unregistered dealer exceeds Rs. 5000 in a day whether for cash or credit then RCM applies.
thanks Sir,
Hi, In our case, we have to pay GST under reverse charge for GTA, Import of services. However, we are not eligible for taking the GST credit (as our output is exempt). In such a case while filing the return, without GST number it is not allowing to make payment and credit will be shown in the GST network? Can you provide the solution Please?
Regards
Venkat
Dear Sir, We are showing expenses – NON GST/NOT APPLICABLE: – like Salary to staff/ Electricity expenses every month. Do We have to show these figures in GSTR 2. There are exempt expenses every month. Should We show those figures in GSTR 2?
no, these expenses are not required to be shown under GSTR 2.
I do not have any sales/purchases(i.e no normal GST liability has arisen in this month i.e.September) but I have paid RCM for last month (August) and also have RCM liability for this month (September). Please Let me know how I can claim ITC for RCM paid in the last month (August).
You can claim ITC for the tax paid in Aug and sept when you have tax payable in the subsequent months.
Dear Sir/ Mam,
We are into TV industry, where we have to provide for Food and Car for Artists for the shoot, which forms the part budget and eventually part of our billings to broadcasters. In our case, whether GST on these food expenses, Vanity expenses, motor card expenses for pick up and drop of Artists and Make expenses which are incurred during the shoot which also be ineligible for credit? Do revert me back. The detailed reply would be much appreciated.
Thanks in advance
You can claim the credit for these expenses incurred provided you provide your GSTIN to the other party.
if we spend in the following manner during the day, what will be the amount payable on RCM method,
stationary expenses( from unregistered ) 2000,
transportation expense ( unregistered ) 4500 and repairs expenses 6600
The tax will be paid under RCM on the whole amount of 13100 as per the rate applicable on the particular items.
Thank you for a quick reply, but purchase from an unregistered dealer up to Rs.5000 is exempted, right? therefore stationary expenses won’t be exempted?
If the aggregate purchases from an unregistered dealer are more than Rs.5000 in a day then reverse charge will be payable on the whole amount.
thank you
Dear Sir/Madam,
I have some queries on Job Work Charges. Our company is a manufacturing unit (Registered Under GST), and we are taking job work services from another Registered Manufacturing Company. Means Our Company is “Principal Company” Supply “Input” (Chemical Product) to Another Company who is “Job Worker” for processing.
So When we supply input to job worker, we issued challans. At the time of receiving the furnished product form “job worker” in given time period. how GST implemented on the same. Means “Job Work” issued Sales bill With GST or Without GST. If GST is Applicable then GST Rate Please
If the job works amounts to manufacture then it will be treated as sale and GST at the rate applicable on that particular item will be chargeable. If it does not amount to manufacture then it will be treated as a service and GST will be chargeable @18% on the service portion.
In the month of July, I have paid 5000 rupees to a GTA.
Now, I have following questions regarding the above:-
1) How to Claim RCM on the amount paid??
2) If RCM has been paid, where to show in GSTR 3b for the month of July?
3) Where to show GTA Services Received & RCM Paid thereof in GSTR 2?
You are liable to pay GST under RCM for the month of July. In GSTR 3b, it has to be shown under inward supplies liable to reverse the charge. In GSTR 2, GTA service received and RCM paid has to be shown under head “Inward supplies on which tax is to be paid on reverse charge”
1) Please let me know the step by step process from depositing tax arising out of inward supplies attracting RCM to Claiming its credit in GSTR 2?
Hello,
I am a trader and dealing in the interstate sale. I paid the freight to the transporter in cash and not issue any bill. In August GSTR3B I have charge RCM total taxable value 40000 and paid RCM 5% on freight inward. I have also claimed ITC RCM SGST Rs.1000 and CGST Rs.1000 in the same month at the time of filing GSTR3B form.
Can you please advice should I issue the bill and advice I have to fill the correct form or not?
If a registered transporter of other state provides the service to me, the transporter is also registered. Freight is less than 5000/- and I am also registered. What will the effect in RCM? Please assist me.
if you are availing services of a GTA who is registered then RCM is applicable on your case and you have to pay tax under RCM.
Dear Sir/Madam
Please clarify Car Rent and Car on Hire. Our Company is paying car rent (Not Car on Hire) every month to an unregistered dealer, which is used by company directors. We have paid GST under Reverse Charge Mechanism in July and August. Shall we claim ITC on Car Rent or Not. If It is ineligible for ITC then specify it.
Yes, you can claim ITC for tax paid under RCM for car rental.
But Car is Used By Directors of Company, Then also we can claim ITC. As per my knowledge, ITC on the vehicle is available only if it is used for the purpose of business (Transportation of Goods or Furtherance of Business). As you said we can claim ITC, then please specify the section.
As the company has been paying the expenses and if the company claims these expenses in their financial statements then these will be considered as an expense of the company and then the ITC for the same can be claimed as these are considered for purpose or furtherance of business.
Ok thank you for your help and suggestion.
Again, I very much doubt your answer as ITC is blocked on conveyance u/s 17(5)(a) of CGST Act, kindly clarify on my email.
I am real estate broker I have not registered with GST because I was not aware that even Real estate agent has to register GST.
Now I have to raise my bill for 3.12 lakhs from the builder.
Now builder says that he will deduct 18% GST and pay to government from my 3.12 invoice by giving me 2.55 Approx in hand.
Now my question is 1) I have applied for GST so can I claim 18% GST back which builder have paid from my invoice because I am unregistered.
2) If I have received GST number then how should I charge my invoice to builder suppose Ex 1 lakh brokerage so should I submit 1.18 lakh bill and take tax and pay to government or builder will pay me 1 lakh and pay 18% GST of own?
What if builder refuse to pay GST on my raised bill?
Kindly help my Father is suffering from Cancer and I am not able to raise bill due to this call complication.
First, of builder cannot deduct GST from your basic bill amount. As you are unregistered he has to pay out of his pocket. And if you got registered then you should raise your bill charging GST in bill & builder will pay you whole amount & you will pay GST to the government. for example, if your bill amount is Rs. 100000/- then GST will be 18000 so total bill amount will be 118000.
Builder will pay you 118000 & you will pay 18000 to the government as GST.
Builder can not deduct GST from your invoice value as you are an unregistered dealer. He has to pay the same from his own pocket and he will get the credit for the same.
Hello, I have paid GST amount on reverse charge mechanism in transportation. I have one doubt. Transportation charges including labour and other charges. how to calculate GST in RCM basis on transportation with labour charges, other charges or without. tell me
Dear Sir/Madam,
I have one query about ITC on Car Rent.
Our company is using a car for director’s, on the rental basis. The car is owned by an unregistered dealer, our company pay car to rent. We paid GST in Reverse Mechanism. Now I have a question about ITC on Car Rent. Can you tell me about the same?
Shall we take ITC on GST Paid on Car Rent under Reverse charge?
ITC would not available for rent-a-cab.
Thanks For Your Reply.
Means Our Company Is Liable To Pay GST on Car Rent, But Would Not Available ITC on The Same
Yes
Transport charges calculation GST amount with labour charges or without labour charges
can I take ITC, if i have paid RCM @ 5% on Freight Inward
You can claim ITC of RCM liability only after paying in cash first.
Suppose RCM GST paid for July month on 15 August. Can we use the said RCM-Input against Normal GST liability of July Month or August Month?
You can use in for the month of August.
Hello
We are a Manufacturer of Engineering goods. We need to Buy RM from Unregistered dealer, persons etc from within West Bengal only.
Also there are some freight(GTA), Logistics, Courier costs bourne by us which falls under RCM for the purpose of sending material and even documents in same state sm times in other states also.
My query is
1) while paying RCM on unregistered purchase of Raw material in which head should i pay to is it IGST and compensation cess or CGST SGST and which return should we show this ?
2) All our freight(GTA), Logistics, Courier costs bourne by us bills are generated within Bengal only though Billing purpose may be sending things to some other state, then which A/c should we pay the Tax to ? IGST and compensation cess or CGST SGST and which return should we show this ?
1) As you are purchasing goods from unregistered dealers within same state, so CGST and SGST is applicable in this case.
2) Place of supply in case of movement of goods is the place where goods are handed over to recipient.
As your transporter and you are in the same state and place of delivery is also in the same state so CGST and SGST is applicable in this case.
All liabilities related to RCM should be shown under GSTR-3b and GSTR-2.
What is the GST impact for availing services of online portal located outside india for booking a hotel room located in india and payment is made in USD using international credit card, by a person in india?
(1)what will be the impact if the person availing such service is not registered person under GST ?
(2)what will be the impact if the person availing such service is registered person under GST
We are a training provider company , GST registered in Telangana. We are occasionally hiring trainer on requirement basis from other state to provide training services in different state. The trainer are not GST registered. My question is do we have implication of RCM when we pay to the trainer ? If YES, as trainer are from different state what are the implication as what I understand is no tax credit for interstate supply?
If you are hiring services of unregistered person then RCM provision becomes applicable in your case. Credit will be allowable of the igst.
Thanks for the prompt reply.
I understand that reverse charge is applicable, but in my case the inter state supply exist (Trainer located in ABC state but our company in XYZ state and service provided in ABC state), and when i am filling GSTR 2 it’s showing ineligible credit. In this case i am loosing my ITC. Please guide me.
Place of supply in case of Trainer services provided to registered person is “Location of recipient”. So in this case IGST is applicable.
Sir, there is a lot of confusion regarding ITC of RCM paid. I have one query. I have paid GST of Inward Supply RCM in cash of the month of Aug,17 in Sep,17.Now, can i take credit of same in Aug,17 GSTR-3B return or should i take it in Sep,17 GSTR-3B since as per GST TWITTER,they say that as soon as u pay in cash in the month u claim in the same month. So should i claim it in Aug or Sep GSTR-3B return. and if in AUg, then whether i would have to write GST amt both in 4(a)(3) and 3(d) of outward. please help me out.
Yes you can claim the credit of such RCM liability in the same month of return, and you have to show it in both columns i.e. 3.1 (d) and 4 (A) (3) of GSTR-3B.
Notification ?
I have gone thru your write up on reverse charge but could not find info on rate of tax applicable on purchases from unregistered dealers. We purchase Textile Handicraft goods from small artisans who are not registered with GST (less than 20 lakh turnover) and from registered dealers. We consolidate and export same. The GST rate on Textile items is 5% upto Rs 1000 value/item and 12% on 1000+ value. Do we calculate reverse charges at these tax rates 5 & 12% as applicable. Some people are saying that there a notification under which reverse charge has to be calculated at 18% irrespective of category. It will be great help if you can clarify this.
Also there is some change in GST rates for Handicraft articles, please advise on same.
Read recent updates on handicraft here: https://blog.saginfotech.com/gst-impact-handicraft-industries
For Revised Slab Rates: https://blog.saginfotech.com/gst-slab-rates-india
Tax under reverse charge has to be paid at the rate applicable on that particular item and not @ 18%.
Sir
plz can you send the FAQ and your reply under GST RCM to my mail
regards
Raja shekara v s
Bangalore
Read the comments of RCM post.
When i filed July GSTR-3B on 28th August. I have enter RCM amount in 3.1 (d) but didn’t enter the same in 4(a)(3) for input credit as it has to be paid in cash is it correct or it should enter in 4(a)(3) even if i had to pay in cash? So now in august GSTR-3B return should i enter August RCM and July RCM in 4(a)(3) or Aug RCM in 4(a)(3) and July RCM in 4(a)(5).
Note- I have not paid RCM for august still.
1. It should be entered in 4(a)(3) if u need itc claim in same month even if u have to pay in cash
2. If u need to claim all the ITC regarding RCM for july and august month then enter total RCM amt( july+august) in 4(a)(3) cgst sgst
But for RCM for Aug is not paid i will pay while filing GSTR-3B. So if i enter in 4(a)(3) how will i pay in cash as it will offset Aug RCM liability or you mean to say if i enter amount in 4(a)(3) it will not offset rcm liability i have to pay in cash only? but i had claim it so will it come electronic ledger?
we are paying and at the same time taking the same amt as ITC.
u can offset liability by entering the RCM ITC in paid through itc column. Pay remaining in cash.
praise the Lord
example
Outward taxable and reverse charge inward
Output liability cgst 50000 sgst 50000
RCM cgst 12500 sgst 12500
Eligible ITC
RCM cgst 12500 sgst 12500
All other itc cgst 5000 sgst 5000
then your total ITC is 12500+5000=17500 for cgst and 17500 for sgst
total liability to pay is 50000+12500=62500 for cgst and 62500 for sgst
In payment of tax page u cannot make modification in reverse chare. so it is in column tax paid in cash.
make entries like this
paid through ITC paid in cash
tax payable cgst sgst
cgst 50000 17500 32500
sgst 50000 17500 32500
Reverse charge
cgst 12500 12500
sgst 12500 12500
so u have to create chellan for 45000 for cgst and 45000 for sgst and offset liability. simple but entry should be made like this to claim itc and offset. good luck!!! praise the Lord
Outward liability other than RCM paid through ITC paid in cash
tax payable cgst sgst
cgst 50000 17500 32500
sgst 50000 17500 32500
Reverse charge
cgst 12500 12500
sgst 12500 12500
My rcm amount is 8000 in July and 8000 in Aug. So from above example in Aug GSTR-3B return i will put July+Aug rcm rs.16000 in 4(a) (3) and in payment page as July rcm is already paid in cash in July GSTR-3B return i have to pay Aug rcm that is rs.8000 in cash and will take 16000 itc to offset other liabilities as I have not taken rcm input credit in July. Is it right?.
Yes, you are right, you have to pay tax for August RCM also and then you can take credit.
YES @MAHESH
First you have to deposit the tax under reverse charge mechanism then you can avail the input credit for tax under RCM.
@BENILA BENSAN I am confused now. @SAG INFOTECH bansan is saying we cannot do moderation in rcm in payment page so ultimately we r paying i cash which is shown in 3(d). and offsetting the same with other liabilities. So is it not correct way?
It is a correct way.
Use ur rcm itc 8000(july) +8000(aug) to offset ur other liability by entering it in paid through ITC column with cgst, sgst respectively. remaining amount to be entered in paid in cash column.
ok. And rcm liability of Aug through cash right? i.e 8000. Just now i call gst portal contact no. they saying Aug rcm itc cannot be set-off with other liabilities in this Aug gstr 3b return will get carry forward to next month. So what u say which one to follow.
July month rcm which was paid in cash in August, now should shown in part 4(a)(3) of Aug return to claim itc, for Aug rcm amount, if paid in cash in August itself can be claim in August return, otherwise pay first cash NOW, then claim in Sep month return . PLEASE CORRECT ME IF I AM WRONG
For ITC of tax paid under RCM, you first need to pay the amount and then adjust the same against the non RCM liability for the same month of return.
If you put Aug rcm on 20th of Sep in Aug gstr 3b in 3(D) and also in 4(a)(3) in payment page u have to pay Aug rcm in cash only there is no option to set-off with itc however you can use the same rcm amount to set-off other tax liabilities in the same Aug gstr 3b return. This is what i understand from the above example from bensan and i had done in my current return like that only.
As you have not claimed July rcm credit you can add both July and Aug rcm in 4(a)(3) and take itc to set-off other tax liabilities of august month.
@bensan @saginfotech is this correct?
Yes agreed.
yes correct
I have claimed RCM CREDIT using the same method as explained. I also offset my liabilities. It’s your choice to choose the way of claiming the credits. (Same month or subsequent month)
Sir,
I had purchased goods and used GTA service for transporting goods from Delhi to Kolkata. In Case of GTA I have to pay tax on RCM basis on freight. Sir my doubt is whether I should pay tax as Intra-State ( CSGT + SGST ) or Inter State ( IGST )?
Transporter had not issued me any invoice for Freight he just issued me a money receipt from his local branch in Kolkata for collection freight in Cash.
You have to pay tax as intrastate i.e.(CGST+SGST).
We are a registered dealer in MUMBAI. For sales purpose, I visited New Delhi for 10 days. I spent Rs.20,000 for Hotel stay, spent Rs.7,000 for food expense & spent Rs.15,000 for car rentals. All my input service providers in New Delhi were UN-REGISTERED. My queries ..1) How do I pay RCM i.e. under IGST or SGST/CGST? …2) Will I get ITC on RCM paid?
IGST will be applicable. yes, you can claim input for the tax paid under reverse charge mechanism.
Sir, In july I have to pay reverse charge of 8040. I paid it on 24/08/17. When I can avail input of this 8040 In August or in September, because one of my friend told me that we can avail input RCM on next month of payment (mean in September ?) Please help me.
once u pay ITC can be claimed for reverse charge tax. If u claim rcm ITC in august u can avail ITC for the same in august.
you can take credit of the same in august if it is reflected in your electronic ledger.
SIR, I HAVE GARMENTS MANUFACTURE. I TAKE THE SERVICES FOR UNREGISTERED PERSON FOR STANCHING THE GARMENTS. WHAT I WILL PAY THE 5 % RCM WHEN ITC IS AVAILABLE FOR JULY AND AUG .
Yes you can take ITC. If you deposit in month of july then you can take ITC in July otherwise you can avail ITC in august.
Sir, Can you please let us know the section reference with respect to the ITC claiming on RCM paid.
Thanks
You can refer to section 49 regarding ITC.
Commercial property rented out at Rs.38,000 per month payable to 4 unregistered landlords as follows: LL 1 – Rs.3800; LL 2 – Rs.7600; LL 3 – Rs.12,100; LL 4 – Rs.14,500. What is our liability under reverse charge mechanism?
are you receiver or provider of service?
DEAR SIR, I AM A COMPOSITION DEALER FOR SWEET SHOP BUSINESS, THE SHOP RENT IS 15000/- PER MONTH, IN THIS CASE I SHALL PAY RCM ON RENT OR NOT, OTHERWISE I PAY RCM I HAVE TO TAKE INPUT IN THE RCM CHARGES.
PLEASE CLARIFY SIR
Sir, Under GSTR3B of July, i had entered my purchases in reverse charge column instead of entering it in ITC, due to which i did not received any input credit, but instead it showed me to pay taxes of outward sales and as well as amount of inward purchases which i entered in reverse charge. Please tell me any solution to rectify it, Can i adjust this in GSTR-3B of Aug month
You can rectify this mistake in filing GSTR 1 and GSTR 2 for July as GSTR 3B is only a provisional return.
Dear Sir/Madam,
I just want to know whether in case of Inward Supplies of services liable to RCM, only amount of total inward supplies liable to RCM & RCM liability has to be uploaded or any further details thereof??
You are required to upload only amount of inward supplies and liability under RCM.
Dear Team,
I want to know that when RCM credit is available? Suppose we have paid the RCM liability for the m/o July on 20th Aug while filing GSTR 3. Now can we claim this RCM Credit in the m/o Aug while filing GSTR 2. Please confirm.
yes, you can claim credit for the same in the month of august provided it is reflected in your electronic ledger.
RITENDRA
Sept 12, 2017 at 17:00 Hrs
Can a hotel bill charged with GST avail under ITC which incurred by an employee of a company on his official trip ?
Dear Ritendra, In my opinion YES you can take ITC on official trip, if this official tour is for “furtherance of business” i.e. for expansion of your business and increase market potential, otherwise No you can not. Important in the definition of input tax is the use of phrase “in the course or furtherance of business” so analyse purpose of trip and go for claim.
Sir, I missed reporting RCM in GSTR-3B and GSTR-1 FOR JULY-2017 and have not paid GST under IGST and/or CGST. Even I have not issued consolidated Invoice for this month. What should i do.
Dear Dhanvant, Don’t worry make the payment with interest for late payment, generate consolidated bill and make correction in return GSTR 1 of Aug 17 as amendment of previous month i.e. of July 17
Sir, My uncle has a property which is given on rent @ 50,000/- per month for commercial purpose and the tenant had deduct TDS @10% and GST @18%. My uncle can claim back the TDS through the income tax filling but how to claim back the GST which is already deducted by Tenant under RCM. My uncle total taxable service is Rs 6,00,000/- so he don’t need to register under GST but how to claim back the GST which is deducted under RCM by tenant?
As per RCM provision, every registered dealer receiving services/goods from unregistered seller, then recipient needs to pay tax on such transaction. So in this case limit of Rs 20 lacs not considered.
Thanks for reply but sir he give my uncle 36,900 [ 50,000(RENT AMOUNT)-5,000(TDS)-8,100(GST) ] I want to know how to claim back the amount of 8,100 he deduct on name of GST.
This is Wrong calculation The Tenant only deduct the TDS Amount Only 5000 Only balance Rs.45000 paid to the Landlord. The tenant calculated RCM on the Basis of Total Rent as Rs.50000 (ie.9000) pay to the Government and taken as Input tax on the Following month
SATHASIVAM is right, tenant is calculating wrong.
Hello Sir,
In this case, Is ITC available for the person who is paying GST under RCM for rent?
I am composition dealer registered under GST paying shop rent of rs. 8000 per month to Mr A (unregistered) and also paying Godown rent of Rs. 25000 per month to MR. B (unregistered). Please tell me the applicability of provisions of RCM. whether I am liable to pay GST under reverse charge. If yes, then on which rent either on shop rent or godown rent? and what would be the rate?
Reverse charge on supplies from unregistered persons has been suspended from 13.10.2017 up to 31.3.2017. so it will be applicable up to sept 2017. also if the bill for October is raised prior 13.10.2017 then RCM provisions are applicable.
sir we are purchasing goods interstate and the goods are delivered through GTA unregistered. We have availed the Rcm, now under which head igst , cgst or sgst the tax has to be pad and we have raised self invoice also against this GTA services
IGST will be applicable.
Sir, I am Ajit Tejwani from Bhopal. I have few questions about GST.I have been searching for there answers but unable to find answers.I will be Very Grateful if you answer my questions. I am registered dealer and my GTA(Goods Transport Agency) is also registered under GST. I have following situations when i pay freight Kindly help me .
My GTA charges Rs 250 per bundle Freight and goods.
1.8 Bundles (8*250)—Rs 2000 One Consignment in single day.
2.21 Bundles(21*250)–Rs 5250 One Consignment in single day.
3.24 Bundles (250*8,250*6,250*10) —Rs 6000 in single day
4.3 Bundles (250*3) –Rs 750 in Single day.
5.6 Bundles (250*6)–Rs 1500 in Single day.
Kindle tell how much GST I have to pay under RCM For Each Case. Also Can I pay Consolidated Tax At Month End or daily wise.
No such limit of Rs. 750
Please let us know the rate applicable in case of Work Contract for supply and installation of Electric Lights covered under different GST rates 12%, 18% and 28%. Further please provide us the HSN/SAC code applicable for the same.
RITENDRA 01 September, 2017
Hi, how could we know the rate of GST to pay under RCM on different goods/services ?
You have to check the list provided by GST council.
Dear Sir,
1) Do GST can be levied on Reimbursement of Expenses? I have generated Invoice to B2B Party first without GST & later on Realised that EVen Reimbursement of EXPenses will attract GST.Then i revised the Invoice With GST But Party has mede the payment without GST.I already Paid GST & treated the party as B2B Party .Am i right trating Party as B2B or Should i Treat Party as B2C Party?for GSTR -1 Purpose pls guide us?
2.Also i have learnt that Invoice is to Be Sequentially numbered in GST.But Sir i have for EG STarted My Series from Invoice 101 & completed till 110 but i have not generated Invoice 111 till 199 & again Started Next month from 200?Also in Between i has Skipped Some Invoices unintentionally.But Since September i have Started Maintaining it Sequentially.Sir I maintained Invoice Wise Dietails in Excel.Is there any Penalty for three months of not maintaining the Sequential Order of Invoice.
Request you to Advice on the Matter.
Hi,
We have received rent payment of 16000 from an unregistered supplier and have marked it along with the reverse charge to be paid in GSTR 3B and filed. Do I mark the same in GSTR 1? or is it necessary only in GSTR 2. Since I could not find an option under which it would go in GSTR 1.
My other query is whether I have to raise a self-invoice for the above transaction or just a bill from the unregistered landlord showing rent amount and that the tax amount applicable is through reverse charge is enough. Also under GSTR 2B, what would be the invoice number I need to put there in this case. {Is it the bill number from the unregistered supplier or my self invoice number (if needed)}
Thanks
Reverse charge in case of supplies received from unregistered dealer is to be shown under GSTR-2. In this case , invoice has to be prepared on self invoicing basis.
Please let us know the rate applicable in case of Work Contract for supply and installation of Electric Lights covered under different GST rates 12%, 18% and 28%. Further please provide us the HSN/SAC code applicable for the same.
where I can report my reverse charge in gstr1?
There is no column to enter of reverse charges and tax.
We are builders in Kerala. we are paying rent. Whether we have to declare the GST on rent paid in GSTR 1 and if under which head we have to declare the same.
Reverse charge in case of supplies received from unregistered dealer is to be shown under GSTR-2.
Our GTA is registered in Gujarat and provide Interstate service to us in Hyderabad. He raises his Freight Invoice without GST. We have to pay GST under RCM. My Question is should we raise self Invoice for RCM if we are receiving Freight Invoice with GSTN No of Transporter.
no, GTA will raise invoice stating that tax under reverse charge is applicable.
Hi,
Self Invoice generated of RCM Inward Supply, how showing IN GSTR 1, Specially in HSN Wise Summary Column and B2B Invoices Column
SIR,
I AM DOING BUSINESS OF FASTENER AND I AM PROPRIETOR OF FIRM AND HAVE GST NO. AND I HAVE ONE PROPERTY COMMERCIAL WHICH I HAVE GIVEN ON RENT HE IS UNREGISTERED PERSON NOT HAVING GST SO ON RENT RECEIVED FROM HIM I HAVE TO PAY GST UNDER RCM OR I HAVE TO COLLECT FROM HIM AND IF I PAY GST UNDER RCM FROM MY POCKET THEN I GET ITC OR NOT
u get itc
mam I was submitted gstr3b for july 17 but forget to mention input tax credit on reverse charge what should I do now?
If you have not mentioned your input tax credit on reverse charge then you can claim that credit in August.
u pay gst on RCM or not, if u paid in cash then allow as credit in gstr 1
Whether GST on RCM on inward supplies from unregistered dealers is to be reported both in GSTR 1 as well as in GSTR 2 ?
Yes, RCM on inward supplies from unregistered dealer will be reported under GSTR 1 as well as GSTR 2.
SIR WHERE TO SHOW RCM IN GSTR-1 FOR INWARD SUPPLIES FROM UNREGISTERED PERSONS.
It has to be shown in GSTR 02.
Sir, I am paying GST on RCM basis for the month of Inward supply of July-2017. Should I claim ITC of RCM GST paid in the month of Jul-17 liability in GSTR 3B or Aug-17 tax liability in GSTR 3B? This is not clarified as the GST paid on RCM basis not shown in Electronic credit ledger.
Whether each and every time ITC of RCM will be carried forward manually by the taxpayer?
Hi, I am a registered Dealer but my purchases are mostly from unregistered persons. I have even deposited the GST on purchase from these unregistered persons and filed the return for July month clearly mentioning the type purchase and GST as under Reverse Charge. Can I claim the benefit of this as Input Tax Credit for August month return?
Yes, you can utilise the credit in august month.
As per GST Act, ITC is not available for tax paid under RCM. Refer Section 17(2) and 17(3).
Section 17(2) states that ITC is available to the extent which is attributable to taxable supplies including Zero-rated supples(Exports) and ITC is not available for exempted supplies.
Section 17(3) states that exempted supply includes the supplies under RCM.
Hence as per the prevailing Acts, ITC is not available for supplies under RCM. Experts! Pl comment..
Section 17(3) provides the manner for restriction of common ITC which is used for both taxable and exempted supplies mentioned in section 17(2). In this regard exempted supplies including the supplies under RCM. It can be understood that, RCM supply is exempted to the person who make the outward supply only. for the receiver of the supply it is taxable supply and hence he is paying tax under RCM. Hence the ITC under RCM can be taken as input if the person is making taxable supply for furtherance of business.
You can utilize the itc of tax paid under RCM, but first you need to pay the amount of RCM in cash.
Hi… If i m receiving the services from GTA and paying the tax on reverse charge basis. where to show the freight inward and tax amount in GSTR 1 return?
It need to be entered in GSTR-02.
Whether i don’t want to pay anything under RCM (as there is a input and output for the same amount)
First you need to pay RCM liability in cash and then you can utilise the credit of tax paid under RCM in the same month of payment or in the next month.
Can we utilised this RCM credit against next month RCM liability ?
Hi sir,
I am a dealer in the agriculture sector, hence no GST for my sales. However, i am receiving certain services for which RCM is applicable. Since there is no output tax, i couldnt set off whatever paid under RCM. In this case my doubt is;
1. Whether I want to pay the tax under RCM first and claim for refund?
2. Whether I want to pay the tax and there is no refund (in result i will take it as expense)
3. Whether i don’t want to pay anything under RCM (as there is a input and output for the same amount)
if you are liable to pay tax under reverse charge then the liability for registration arises. Under service tax regime refund is given under similar circumstances(tax paid under RCM is refunded if not able to claim tax credit) the same will be continued under GST.
Where to input ins GST1 , for the reverse tax i have paid . Eg : my office is leased from a unregistered dealer (Building Owner) and the rent is 50,000. I had paid reverse TAX of 9000 during the GST3 Return filling for the month of July. Now my question is where to input in GST1, this transaction, is it to B2C or B2B .
If it is in B2C , there is no provision to identify the translation is reverse charge and if it is B2B , which GSTIN should i put under GSTIN/UIN field,
More over this amount has to refect on input tax credit .
Pls help
GSTR-1 contains only the details related to your outward supplies during the concerned period. RCM paid during filing of GSTR 3b was to be shown in the column of eligible ITC column and then that ITC will automatically reflected in your credit ledger of next month’s return.
Dear Sir
I have many expenses in day to day transaction in different different heads as RCM is applicable where if i purchased from unregistered person. My question is that the limit of Rs 5000 is applicable for total of all expenses a day or applicable on heads like if i spend on stationery Rs 5000 and Rs 4000 on staff welfare now are they both under RCM or only stationery.
Limit of purchase from unregistered dealer i.e. Rs. 5000 is applicable on all the purchases made from all the unregistered dealers in a day.
are purchases by registered dealer from Composite dealer is taxable under RCM?
Hello, I am doing transport business in one state and trading business in another state and i am registered in gst only for trading business. whether i am required to registered for transport business also and please also clarify whether gta is required to get registered if provide interstate supplies?
Dear Sir, How can change in GST regular dealer to composition dealer.
Every registered person under GST and opts to pay taxes under Composition Scheme, must follow the following:
Dear Sir, We have Vat Input Credit forward to GSTR Sum Rs.50000/-. in this credit amount adjust to RCM Paid amount.
Input credit cannot be used to pay tax under RCM.
HI, We are registered in GST and paying commercial space rent Rs.30,000/month to unregistered landlord, do we need to apply RCM. Because as per notification said doesn’t exceed 5000/day.. it means 150000/Month? correct me if am wrong..
As you are paying amount more than Rs. 5000 in a day to unregistered dealer, you are liable to
RCM. Limit to be checked day wise.
HI, We are paying commercial space rent Rs.30,000/month, do we need to apply RCM. Because as per notification said doesn’t exceed 5000/day.. it means 150000/Month? correct me if am wrong..
As you are paying amount more than Rs. 5000 in a day to unregistered dealer, you are liable to RCM. Limit to be checked day wise.
My Company is GST registered. I have one transporter (Transport is indu & Unregistered, turnover is less than 5 lakh ) bill received by road without consignment note (this transporter using daily basis – inward & outward suppliers), but bill arising monthly (Inward and outward separately. GTA Applicable or not. If applicable, then rate how much 5% or 18%.
Hello Maam,
I want to know where to take the input with regard to purchase of equipment for business purposes while filing GSTR-3B for this month.
Also, if you would be kind enough to let me know the procedure for filing of GSTR-1 if i have manual billing system.
In GSTR-3B you need to mention the ITC on eligible capital goods in “Eligible ITC” column manually.
Hi
Is the Trust, who are working in development sector are exempt from GST.
Sir/Madam
I am registered GTA, providing transport services to Company. Let me know where i have to mention amount of my transport services in GSTR-3B and GSTR-1.
sir/madam, we are obtaining manpower supply service ( security agency supplies manpower and charges minimum wage + service charge from us) . Please clarify if GST is payable on entire bill amount or only on the service charge component of the bill. links to any relevant orders /notifications etc please be given. Thanks
When can i take the ITC of the taxes what i have paid on RCM?
if you have paid tax under RCM in advance then you can claim input in the same month. otherwise credit will be allowed in the next month.
So ideally if I had paid the paid under RCM of July 2017 in the month of July itself then i can take the credit. If I am paying it in August i can’t take the credit in the month of July.
Yes, you can utilise the credit of tax paid under RCM, after paying it in cash.
Madam.
For the purchase from URD, on date 15-Aug-2017, for an amount of Rs.10,000/-. I am liable to pay GST of Rs.1800/- as per RCM.
Can i take ITC of the same during filing of Aug 2017 returns if
(1) I pay Rs.1800 any day between 15-Aug-2017 and 19-Sep-2017. (i.e, before filing Aug returns)
(2) I pay Rs.1800 while submitting Aug Returns on 20-Sep-2017. Please clarify
You need to pay RCM liability in cash before filing of GST return for the concerned period and then you can utilize the ITC for the same.
I am sorry but this is not a precise reply to the question. The question is if RCM is paid before due date of filling August 2017 returns and before filling of August 2017 return then can input credit of RCM be claimed in return pertaining to August 2017 period.
Please answer if RCM can be claimed in GST Returns pertaining to August 2017.
Regards
yes, you can claim the input in the same month if it is paid before due date of filing return.
RCM of July paid in August, credit input in july or August? please help in this matter. if any notification or section please provide
RCM liability of July month must be paid in cash before filing return for the month of July and you can also use the ITC of same in the July month.
WE CAN USE NEXT MONTH 100% SURE
It can be used in the same month if deposited before filing return.
I AM SELLING EXEMPTED GOOD SO IF ANY RCM PAID BY ME IS REFUNDABLE TO ME ?
Refund of unutilized input tax credit can be claimed in the following two cases under GST:
why RCM liability would not fall in output liability??
Since ITC cannot be utilised for payment of tax under RCM.
You said that purchase of old gold and silver from customer by a jewellers is not a supply. Then where in GSTR 3 B we will show the consolidated value of such purchase
I am a dealer in un-branded Agro products i.e. not liable to GST.
So, I don’t have to pay RCM on Motor Freight for inward suppliers, Purchase Brokerage, Sale Brokerage, Godown Rent etc.
But, suppose I am re-seller of Sugar i.e. goods chargeable under GST, then Whether I have to pay RCM for Motor Freight for Inward supplies, Purchase Brokerage, Sale Brokerage, Godown Rent etc.? i.e. Expenses above Rs.5000/- per day per person ?
Thanks in advance
Dear Mam
Please clarify if a Regd.dealer based at UP purchases goods from 10 different cities on same date and GTA Service provider of every city charged 500 in his builty as transportation charges, whether I am liable to pay any GST on this or can I avail the exemption benefit of being less than 750/-. Thanks for your prompt reply.
No limit uptil now has been prescribed under GST for the exemption benefit.
Please clarify
A registered jewellers purchase old ornaments from customer (exempted from RCM GST) =Rs10000.
On that same day he makes a purchase from unregistered person = Rs3000
Therefore total unregistered purchase on that day is 10000 + 3000=13000
Q. Will RCM apply on 3000 ?
Purchase of old gold from from customer is not treated as supply. So limit of Rs. 5000 does not apply. Tax need not be paid on 3000.
Suppose I purchases goods from unregistered dealer for Rs. 1 Lac. and i made a purchase voucher under RCM and apply 18% CGST Rs.9,000 or SGST Rs.9,000.
Total RCM Rs.18,000/-
Now,
I sale to registered dealer
A is Interstate Dealer
Goods Rs. 50,000 @ IGST 18% 9,000
B is Intrastate Dealer
Goods Rs. 30,000 @ CGST 2,700 & SGST 2,700
Can we adjust RCM with Output taxes in same month?
Or
RCM deposited ?
If you’ve paid RCM in advance in the same month then first you may claim ITC in the same month. Otherwise in the next month. Yes, if you’re availing ITC against RCM paid then must mention in the GSTR-3 (i.e. monthly return).
I have a question, In GSTR 3B tax payable shown under RCM then we take the same amount of credit in input supply under RCM in July month or first we have to pay duty on RCM in cash and then credit taken in next month August. Please clarify
If you’ve paid RCM in advance in the same month then first you may claim ITC in the same month. Otherwise in the next month.Yes, if you’re availing ITC against RCM paid then must mention in the GSTR-3 (i.e. monthly return).
Reverse charge is 9(4) and 9(3) and GST liability u/s 9(4) can be adjusted from Input GST in same month or will be payable before then Input can be taken in next month
GST liability arises due to RCM can only be paid through Cash.
SAME QUETION:- WE HAVE TO PAID PURCHASE + SALE BOTH TAX BECAUSE SOME ONE TOLD ME FIRST – RCM TAX FROM SALE TAX THEN PAID
Suppose I purchases goods from unregistered dealer for Rs. 1 Lac. and i made a purchase voucher under RCM and apply 18% CGST Rs.9,000 or SGST Rs.9,000.
Total RCM Rs.18,000/-
Now,
I sale to registered dealer
A is Interstate Dealer
Goods Rs. 50,000 @ IGST 18% 9,000
B is Intrastate Dealer
Goods Rs. 30,000 @ CGST 2,700 & SGST 2,700
Can we adjust RCM with Output taxes in same month?
Or
RCM deposited ?
if RCM is paid in advance, then it can be adjusted in the same month. Otherwise in the next month.
I have a query, I have purchased from unregistered dealer and paid him on 15th June and paid the reverse charge liability on 17th August.
1 Is there any interest applicable on such reverse charge payment.
2. Can i claim ITC credit against GST liability in July month Return or shall i claim it in august month return.
1 GST liability for the month of July, 2017 is to be deposited on or before 20/08/2017. Interest liability arises in case you have not deposited the same before due date.
2 You can claim ITC paid for the month of July, in the return filing for July month.
Sir,
Please clarify,
RCM invoice dated is 01/08/2017
RCM payment deposited to govt., 10/09/2017
So if we are depositing in the month of September we claim ITC in September.
With means, taxable value under RCM is show in August month return and ITC will be shown in September return right.
Please clarify and if you know the relevant section kindly lets us know.
Yes if you deposit the amount under RCM in September then you will be eligible to take credit in September only.
I am registered dealer under GST in west Bangal. I purchased a laptop and a Scooty for business purpose of use fro a registered dealer. Can I take the benefit of ITC on the both and how.
I have 2 doubts regarding Reverse Charge. Plz suggest
1. I bought goods from other state from a registered dealer from a transport. The transport charge is Rs.470. Am i liable to pay reverse charges, if yes then in which form will I mention and how?
2. I bought goods from a composite dealer from same state and sold the goods in a GST bill. Am i liable to pay reverse charges, if yes then in which form will I mention and how?
1. Currently you have to mention it under point 4 “Eligible ITC” column of GSTR 3B.
2. Plz clarify your question.
1. You do not have to pay the reverse charge as consignment amount is less than Rs. 750.
2. No, you are not liable to pay Gst as the composite dealer would have already charged GST rate at a concessional rate.
Dear sir
Reimbursement to Auditors expenses like hotel stay,food,ticket,auto fair
is liable under gst on Rcm? what is rate of tax? if credit allowed?
Amount of Voucher is Rs.11950/-
RAVI CHRISTIAN
August 16, 2017 at 6:28 pm
We paid import duty on ice gate in July 17. The paid amount, we showed in bill of entry with 18 % IGST, mentioned party given without tax bill dtd 30/6, how to take entries, can we avail credit? Should we ask party to give bill in July only ? if yes with Igst ?
please clarify your question.
Is it required on show the premises of UNREGISTERED JOB WORKER as my additional place of business?
If goods are directly supplied by the principal from the premises of unregistered job worker then the principal should have declared the premises of an unregistered job worker as his additional place of business. If the job worker is a registered person then goods can be supplied directly from the premises of the job worker.
I HAVE A QUERY. SUPPOSE I HAVE EXCESS ITS (AFTER SET-OFF OF SGST&CGST LIABILITY) IN SGST AND CGST SAY OF Rs. 10000/- AND MY GST LIABILITY FOR GTA UNDER RCM IS OF Rs. 2000/-. CAN I SET-OFF SUCH RCM LIABILITY IN EXCESS OF SGST AND CGST (i.e. 10000-2000=8000)
PLEASE HELP
No, ITC cannot be used for the payment of tax under RCM.
I am in jewellery business. Suppose I purchase old gold from customer(no GST on RCM basis as clarified by FINANCE MINISTRY) = RS 10000.
On that same day I make URD purchase of Rs = 4000. Q. So will RCM apply on 4000 ?
I am paying rent for my business premises on quarterly basis. When will be GST on RCM basis be paid,
In case of unregistered landlord, RCM provisions are applicable. Payment has to be made quarterly in your case.
I purchased a laptop and Scooty for business purpose. Can I claim for ITC in gst and deprecition both on thsese
We paid import duty on ice gate in July 17. The paid amount, we showed in bill of entry with 18 % IGST, mentioned party given without tax bill dtd 30/6, how to take entries, can we avail credit? Should we ask party to give bill in July only ? if yes with Igst ?
Hello Guys,
Need a clarity on ISD registration. We have branches across India as sales support office and Registered office is located at Bangalore. If we get our branch office registered as ISD means can i transfer the GST credit to by HQ thru billing is it possible Major Input is on Rent, Telephone, Internet Charges, Hotel Lodging,Exhibition, & Courier Request to Reply & do the needful
Yes, you may obtain registration under GST as IDS provided ISD may distribute the credit subject to the following conditions:
My company is located in Mumbai and I have a client who needs material in Tamilnadu. He needs the goods on freight paid basis. So now the when I send the goods via a transport the transporter will charge me 2.5% CGST and 2.5% SGST on reverse charge mechanism i.e. the tax will not be collected by them instead i need to pay the tax on the transporters behalf. So now this is a cost for me and also i have to pay tax against it as per RCM.
So i want to know the following details in order to bill my client/recipient of goods. 1) Do i need to Mention freight charges separately?? if YES, then what will be the GST rate?? should i need to mention the same freight charge as charged by the transporter to me in the invoice or i can increase the value of the freight by adding some profit on it ?? If NO, then can i adjust the cost of freight + tax levied on it in my product cost and invoice him?? 2) Is the 2.5% CGST and 2.5% SGST charged by the transporter to me eligible for Input tax credit for me or the recipient of the goods. 3) also if you can share an invoice showing similar situation it would be of great help
If transportation cost is part and parcel of supply then GST has to be charged at the same rate of tax charged on supply. For example, If you are supplying goods to a party and charged taxed at 18%, then you have to charge tax on transport cost also at 18%.
Further it should be noticed that if you are not charging freight cost in invoice and is directly paid by buyer or recipient of supply, then he has to comply with GTA provisions including RCM. No ITC will not be available against the tax paid for GTA under reverse charge.
Freight Cost borne by customer is understod : that customer has to comply with RCM.
If we show the freight in invoice and transporter charging freight from us and we paying to the transporter on the behalf of customer, then should we comply to reverse charge or not. As we already paid GSt on the freight charges in invoice.?
Thanks
RCM ON SERVICES TAKEN FROM GTA BY A REGISTERED DEALER IS 5% OR 18% WITH INPUT TAX CREDIT CAN BE AVAILED,PLEASE CLEAR THAT CONFUSION, AT ONE PLACE ITS WRITTEN 5% WITH NO INPUT CREDIT & OTHER PLACE ITS SAID 18% WITH ITC. IS GST PAID ON EVERY SERVICES IS AVAILABLE FOR ITC IN B2B SUPPLIES. HOW TO ARRIVE , I WHETHER IGST, OR CGST/SGST IN RCM SERVICES.
On GTA services, Reverse charge mechanism is applicable with no ITC. Tax @5% is payable.
Can we avail ITC of RCM on the same month in which the RCM liability arises?
yes, you can avail ITC of RCM in the month in which the liability arises.
No, once you pay the tax under RCM of this month, the same amount of tax paid shall be available for credit in the succeeding month but not in the same month.
if it is reflected in your electronic credit ledger, then credit can be utilized in the same month.
Dear sir
Reimbursement to Auditors expenses like hotel stay,food,ticket,auto fair
is liable under gst on Rcm? what is rate of tax? if credit allowed?
Thanks in advance
Dear sir
1)against which tax (cgst,sgst,igst) we take credit of old stock excise?
we have purchased in June in +vat,& bond transfer basis. we are traders.
2)Godown rent paid to urd/rd
what if they don’t give bill and only receipt ?
can we still take credit on that ?
Credit of excise can be utilised against IGST.
I am a GTA and having more than 100 Trucks. I am registered in GST and providing service to only Registered Customers only. my Query is that : Should I have to file GST Return ?
Also
I have made expenses of Truck Repairing & Labour Charges but some of them are unregistered. Should I have to pay GST on these unregistered expenses and show all these expenses on GST Return if I have to file GST Return?
Yes, every registered person is required to file GST return.
Your answer is not proper and complete, If I paid labour charges to unregistered person (Pure labour contact) labour engaged in construction of commercial tower then RCM is applicable. If, yes then at what rate of GST is applicable if contractor belongs to out side the state.
I am registered dealer in west Bengal, I purchase goods from a registered dealer of UP. Goods are delivered by a unregistered transport of UP under his bilty by road. I have to pay RCM of Freight. what will be payment of RCM of the freight, either IGST or CGST+SGST, please clear it
IGST will be applicable in your case.
sir as per your previous reply we can avail ITC on office rent & payment to advocate/ca,,& kindly also advice do we can available ITC if GST paid on RCM on repair maintence of office building & vehicle & consultancy on recuitment expenses,,,,& employee tour exp with supporting of hotel bill & fooding exp voucher
sir as per your previous reply we can avail ITC on office rent & payment to advocate/ca,,& kindly also advice do we can available ITC if paid RCM on repair maintence of office building & vehicle & consultancy on recuitment expenses,,,,& employee tour exp with supporting of hotel bill & fooding exp voucher
Sir,
We had done work from Unregistered erection work contractor and the work is completed before june-2017 but exp we had booked in July-2017, is RCM applicable , bill date Is also june month.
With Regards
Paneer selvam
If you are charging GST then RCM is applicable.
Registered dealer of Gurgaon taken services of an Advocate in Delhi.
Which tax will be applicable i.e. IGST / CGST / SGST
IGST will be applicable.
i incur transport charge 1500-3000 on atleast 15 days of month. do i need to raise invoice on RCM for each such day.
Under GTA service provider (un registered dealer) will Charge GST on >750/- consignment freight?? and if multiple cns >750/- then will charge ?? like Service Tax ??
No such limits have been specified under GST . Tax@ 5% is applicable with reverse charge mechanism with no ITC.
1)We are under composition scheme,is GSTR3B required to be filed by composite dealer before 20th Aug’17?
2)Secondly, can you share INVOICE format for raising invoice for goods purchased under RCM
3) Goods purchased from unregistered dealer for Rs 3000/- with no RCM invoice raised, now will Bill of Supply required while selling this goods?
iF i AM MAKING PAYMENT BELOW 5000 PER DAY TO GOODS TRANSPORT AGENCY WILL I HAVE TO PAY REVERSE CHARGE AND WHETHER UNDER IGST OR CGST & SGST
RCM provisions will be applicable since limit of Rs. 5000 in a day is for the sales made or services availed from unregistered dealers/service providers.
i want to rectify mistakes in migration to gst. i got the gstin registration no. but i how to edit my sumission.
Minor Correction & Amendment in submitted form is only allowed under Registrations Section of GST Website after your login.
Do i need to raise bill on reverse charge basis for transport services availed for supply of goods to my customers,
(i)if i buy 3000/- worth goods and 3000/- transport bill on a single day from u/r dealers. do i need to pay tax on rs 1000 or do i need to pay tax on entire 6000/- can i claim RCM on said payment (transport and purchase of goods).
For services provided by goods transport agency, reverse charge is applicable. Tax @5% is applicable with no ITC. Limit of Rs. 5000 is only applicable in case of purchase from unregistered dealer. In your case If transportation cost is part and parcel of supply then GST has to be charged at the same rate of tax charged on supply on total Rs. 6000.Further it should be noticed that if you are not charging freight cost in invoice and is directly paid by buyer or recipient of supply, then he has to comply with GTA provisions including RCM.
Dear Sir,
Only notified goods and services such as GTA, Advocate, etc are supposed to be charged GST under reverse charge mechanism. Is it necessary to pay tax on services other than mentioned in the list such as conveyance, staff welfare, etc ?
if goods/services availed from unregistered persons exceed Rs. 5000 per day, then reverse charge is applicable on such goods/ services.
Dear Sir
Is Reverse charge applicable for Jobwork . Suppose I get work done from a Jobworker who is unregistered. Job work he does is manufacturing. Do I need to pay tax under RCM
Niraj
Yes if you get job-work done from unregistered dealer then you are liable to pay GST under RCM.
I have registered with GST and a Manpower Recruiter, with turnover of around 12 lacs per annum. Have I to charge GST to my customers now, since my last 3 years turnover has not crossed 12 lacs.
Yes you have to charge GST to your customer as you are registered under GST.
I am a registered dealer in Punjab. I bring goods from Delhi through GTA and pay cartage of Rs 3500/- in a day. Is rcm applicable on me .
yes, RCM is applicable in your case since limit of Rs. 5000 per day is applicable only on goods/services taken or accepted from unregistered dealers.
But what if GTA is also unregistered. Since he provides only GTA service, he need not be registered, so he has not taken GSt registration. Still, RCM is applicable in this case?
Then limit of Rs.5000 per day becomes applicable i.e. Supplies received from unregistered persons.
Wheather to charge RCM on services less than Rs. 5000/- in a day from a Registered Dealer to Registered Dealer
Like Bill recd. from GTA for his services
RCM is only applicable on goods/services provided to registered dealer by unregistered dealer. On goods/services provided by registered dealer to another registered dealer, normal provisions apply.
sir there is RCM on rental exp of office & professional charges paid to advocate but kindly clarify do we can avail input on it–we are dealing in manufacture business
You can claim input of the tax paid under reverse charge mechanism.
Yes, input will be available for tax paid under RCM.
sir we are paying rent of office 30K & rcm is applicable do we can avail input on it in same way paying 45k to advocate p.m & rcm is applicable here too do we avail input on it
sir ur co is in manufacture business
sir, i am a dealer of supply the apple box from Delhi to Shimla. My office situated at Parwanoo. From Delhi invoice to be declared to my firm name but the freight to be paid by the costumer of Shimla. from Delhi freight bilty is to be done to my firm name but i am not paid freight. In this case who will pay the reverse charge on freight
Dear Sir
Is Reverse charge applicable for Jobwork . Suppose I get work done from a Jobworker who is unregistered . Job work he does is manufacturing. Do I need to pay tax under RCM
Yes. RCM is applicable on job work service also.
We are paying commercial rent of Rs.14,000/- per month, we are a partnership firm. The owner of the property does not fall under GST since his income does not cross the limit of Rs.20 Lac. In this scenario do we have to pay GST as reverse charge on the rent amount being paid? kindly advice
Yes, RCM provisions will be applicable in your case since the landlord is not registered under GST if the service is intrastate service. Since for interstate service, registration is mandatory.
Thank you so much for your prompt response. Does the RC invoice follow the same serial number of regular sales invoice or does it have separate numbering?
Dear Chanchal madam,
I am A CA & practising my turnover is less then 20 Lakhs But iam Registered for GST. Am i Liable to Collect GST & Pay to Government or will i under RCM?
Regards
Kaushik Shahukar
No, RCM will not be applicable in your case. since you are registered under GST , therefore liability to collect and pay tax arises. Once a person opts for registration, then all the provisions as applicable on the person who is mandatorily required to get registered relating to tax payment and return applies on the person who voluntarily opts for registration.
Thx madam,
Is the rule different for person taking fresh gst registration and person who has migrated.if the person was covered under service tax tule has shifted to gst under migration whether he can claim rcm method for gst if his turnover does not exceed 20 lacs.
I am working in a trading company in an accounts department, I have query on Transportation or Freight Charges. If we get transport services from Non GTA transporter i.e. from local or roadside tempo who is not issuing Bill, L.R., Consignment Note etc. then GST is applicable under reverse charge. Or it is exempted service from GST. Please reply
If you are paying Rs 5000 per day to the transporter then no RCM applicable, But make sure in that day you do not entered above 5000. – From Kunal Mob. 9979546978
CHANCALJI, DON’T WRITE DESCRIPTIVE ENGLISH, GIVE YOUR SUGGESTION IN SHORT AND POINT TO POINT WAY
Provisions have been quoted as per the act and if you need any clarification regarding any clause then you can ask your query .
under proprietor firm (cab-a-services), services receiver liable to pay GST or services provider pay GST under which clues of GST please kindly reply
In case of service of rent a cab services, reverse charge mechanism applies. i.e. the service receiver is liable to pay tax.
In case of transportation of goods by road services other than by GTA is exempt. “Goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. जो माल pickup या ट्रैक्टर्स पर बिना बिल्टी के भेजा जाता है क्या वो GTA की सर्विसेज माना जायेगा या वो exempt सर्विसेज मानी जायेगी
Reverse charge is applicable in case of GTA service i.e. recipient is liable to 100% GST.
. जो माल pickup या ट्रैक्टर्स पर बिना बिल्टी के भेजा जाता है क्या वो GTA की सर्विसेज माना जायेगा या वो exempt सर्विसेज मानी जायेगी
the manufacturer delivers the goods to dealer on FOR and GST IS PAID BY MANUFATURER wheather manufacturer can claim full GST paid on trasportation
GST on RCM is charged for Government services like issue of permits/licences etc. (code 999111). The party availing service will have to remit GST @18% of the payment made. What is the responsibilities of the service provider (in this case Government Department). On what amount GST will be remitted by the party who obtained service. What is the mechanism for cross checking the transaction as there is no invoice made by the service provider?
GST is chargeable on the transaction value which is the actual amount paid or payable for the goods and services
can GST amount paid under reverse charge on 20th August ( liability of July) be adjusted against the reverse charge liability of August month which is payable before 20th Sept ?
Yes, adjustment can be made.
I have query regarding issuing of invoice in case of RCM , in case of i pay GST in RCM then i have raise Self invoice for each unregistered person payment or one for day or any time frame
Please suggest
how to enter purchases from unregistered dealers in GST portal?
You have to fill detail in GSTR 2 form under heading (From Registered Taxable Persons including supplies received from unregistered person in case of reverse charge).
Hi RCM if Rs 5000/- per day exceeds, is it compulsory to pay RCM under GST of every purchase & service ?
Yes it is compulsory to pay under RCM if purchased from unregistered dealer exceeding Rs 5000 per day.
I am registered in regular scheme under gst. what will happen if i purchased d goods from a manufacturer registered under composite scheme??plz reply
yes you can purchase goods from the composition dealer but no ITC will be allowed on the goods purchased under composition scheme.
A is a registered proprietary concern, he purchases kirana items from a kiranawala who is unregistered, worth of Rs.10,000/- on a single day for consumption at their home, he purchased on the registered name. Does A is required to pay RCM. Section 9(4) of CGST is not clear on this issue, i goods used for furtherance of business, please through some light on this
If purchase from unregistered dealer exceeds Rs. 5000/day then registered purchaser is liable to take pay tax under RCM.
hi
I am a registered dealer and received services from transporter.
I made payment to transporter under RCM.
Can I avail input for GST?
Yes
Hi
I have a question regarding reverse charge under GST.
Consider a scenario, An advocate is providing services to doctor who(Doctor) is not liable to get registered under GST as he is providing exempt services. Services provided by an advocate is taxable under GST under Reverse charge.
Is doctor liable to get registered under GST under reverse charge?
Kindly suggest me the best possible answer.
As per GST, services provided by an advocate or a firm of advocates by way of legal services to any business entity is covered under reverse charge.Since doctor is not a business entity therefore reverse charge provisions are not applicable. if the services are provided to any hospital then reverse charge applies.
We are a manufacturer and engaged GTA for supply of goods. We are a liable to pay GST under RCM. Is it available for taken ITC against the GTA and what percentage of TAX we will pay and SAC code?
Are there any sample invoice for RCM? as what needs to be written? As an example if “Krishna Goods Transport” from U.P. a GTA gives “Global Paper” in Haryana a transport service. The “Krishna Goods Transport” provides a builty of Rs. 25,000 in name of “Global Paper” What will be the format of the self invoice under RCM?
The difference between a normal tax invoice and tax invoice under RCM is that the invoice must mention that the tax under reverse charge is payable.
We are providing Hospital Service & Pharmacy sales. Hospital Service is GST exempted and no output tax collected. If we get supplies from unregistered dealer for Hospital Services, understand we have to pay GST on such purchases u/RCM. Can we take ITC on it, as the purchases are for furtherance of business (ie Hospital Services) though it is exempted. Since we are registered dealers, we FEEL we can take ITC on GST paid u/RCM, as the services are for furtherance of business.
Sir,
if you are registered under GST regime that means some of your products/service comes under the GST tax regime. Therefore, you can 100% take ITC of GTA , which is 5% under RCM. GTA is exempted under GST. If the supplier is an unregistered dealer then according to rates of the product/service being supplied you have to create a Self-Invoice with the respective rate and HSN/SAC code. Under this scenario as well as long as you are a registered person under GST regime you can clearly take 100% ITC on the goods/service being supplied to you by an unregistered dealer.
You cant take input credit as your supply is exempt. why did you register in the first place, if you’r exempt under Section 23.
AS GST RULES ADVOCATE DID NOT HAVE GST . BUT HOW CAN I ENTRY IN MY ACCOUNT BOOK. IS THAT RCM AND IF ENTRY RCM HOW CAN I DO
Services provided or agreed to be provided by an individual advocate or firm of advocates by way of legal services, directly or indirectly to any business entity is covered under RCM provisions i.e tax shall be payable by the recipient of the services.
Dear Sir,
If the advocate providing service is “A” state and service recipient is in “B” state then how the reverse charges will apply.
Services provided or agreed to be provided by an individual advocate or firm of advocates by way of legal services, directly or indirectly to any business entity is covered under reverse charge mechanism.
BUT WHAT IF ADVOCATE IS SUPPLYING SUCH SERVICES TO BE OF OTHER STATE. STILL A BE IS LIABLE TO PAY IGST (OR CGST AND SGST AS SELF INVOICE IS CREATED IN REVERSE CHARGE)
SO IGST WILL BE PAYABLE BY BE IN CASE OF INTERSTATE SUPPLY OF SERVICES
please rate of tax of GST Under RCM & its code in (IGST, SGST CGST) which applicable.
If a company registered under GST and hiring the services of their retired employees, whether it will attract RCM under GST.
If yes, what will be the treatment of this event?
My quarries is, I am GTO (Goods Transport Operator) I have 3 truck. I am dealing with factory companies firms etc I have GTO issued bill to factory companies on kaccha chittha or bills on tally to and fro specified in bills. I am not cross 20 lacs limit. But my client is force to me regarding taking registration of GST ? It will applicable reverse charge ? then why they are forcing me ? pls advice
Yes, reverse charge is applicable on GTA services by road and 100% GST is payable by Recipient. If you are providing interstate services then it is compulsory to take registration.If you are not providing interstate services then it is not compulsory to take registration if limit of Rs. 20 Lacs is not crossed.
THANK YOU SO MUCH SIR.
SIR, IF I HAVE TAKEN REGISTRATION THEN WHAT IS PROCESS OF PAYMENT OR RCM ?
not liable for registration under section 23 of cgst
thresh hold limit in GST for reverse mechanism Rs.5000/- per day is is correct please clarify and in tally point of sales (multiple customers) multiple products (in hotels) stock inventory/hsn codes are compulsory
INR 5000 per day is correct and HSN code is compulsory if turnover is more than 1.5 crore.
I have the following query :
I have a manpower supply agency and have supplied the manpower to educational institute and also to Government Department can i charged IGST and CSGT to Government department i.e. PWD, ESI Hospital etc.
I have already registered in GST Portal.
Under GST, certain government establishments will be required to deduct tax (TDS) from the amounts paid by them to the suppliers. The tax would be deducted @2% of the payment made to the supplier (the deductee) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakhs and fifty thousand rupees. Thus, individual supplies may be less than Rs. 2,50,000/-, but if contract value is more, TDS will have to be deducted.
Servcies provided to educational institute is exempt.
IGST can be collected only in case of Inter state supply.
Within state supply is liable for CGST and SGST at same rate for example furniture @ 28% where 14% is for CGST and 14% is for SGST.
I have a query as under ”
1) In gst regime whether input credit is available against GTA Inward for a registered contractor or a trader
2) In gst regime whether input credit is available against GTA Outward for a Manufacturer
Services provided or agreed to be provided by GTA, reverse charge mechanism applies with NO ITC.
on which basis u said that
No ITC on GTA services is for GTA service provider as he/she is not registered. The registered person can avail credit of Tax paid on GTA service by RCM.
Yes the credit will be available on both the instances, provided tax is paid by the person who bears the Freight Charge on RCM basis.
In gst regime 100% input credit is available against GTA Inward for a registered contractor or a trader
There is no input credit available in case of GTA services.
RCM paid under GTA Services is available as input credit for any other outward supply as it is not restricted under Sec 17. But input credit for providing GTA service is not available.
yes, agreed
I have a query relating to ISD of GST. in what way ISD will distribute supplies from unregistered person / RCM credit to its other unit / plant,
If the person liable to pay GST under Reverse charge, then he will not eligible to take registration as ISD, because he will be treated as normal service provider/ Goods Seller.
This is my opinion..
Thanks,
ISD registration can be taken by normal service provider/seller along with normal GST registration.
ISD inputs credit is for distributing credit of commonly availed service one unit to its other unit having same or different GST registration but same PAN No.
GST under reverse charge will be paid on or before filing GSTR-3 for previous month. For example, for July month it will be paid before 20th August and credit can be availed in the month of August.
So the credit availed in the month of Aug can be used for distribution through ISD mode in Aug itself or in sebsequent months.
WILL RCM GST PAID FOR JUL MONTH CREDIT CAN BE AVAILED FOR THE RETURN PERIOD OF JUL MONTH (WHICH IS BEING FILED IN AUG MONTH) OR FOR THE RETURN PERIOD OF AUG MONTH (WHICH WILL BE FILED IN SEP).
?
I have query where Tax paid under RCM is reflected in electronic ledger?
whether input can be taken in the same month in which it is paid?
Please contact department for assisstance
GST under reverse charge will be paid on or before filing GSTR-3 for previous month. For example, for July month it will be paid before 20th August and credit can be availed in the month of August.
What if a dealer chooses to pay July tax on 30th July ? Can he clain input credit of tax paid under RCM in July itself ?
Can this amount paid under reverse charge 20th be adjusted against the reverse charge liability of August month which is payable before 20th Sept ?
No, Input will be available after filing of return.
If we spent Rs. 25,000/ in the following manner during the day.
Rs. 2000/ Auto fare to different employees. (Exempted from GST)
Rs. 2500/ Hotel Stay to Employee for 3 days (Rs. 850 per Day Exempted from GST)
Rs. 8000/ to Supplier on account against supply of material who is registered and Bill is already booked in return.
Rs. 4000/ Hotel expenses on which, GST is already charged.
Rs. 4500/ Insurance Renewal Premium.
Rs. 4000/ Staff food Expenses.
Are we liable to pay GST on RCM, and on what amount?
Request to Inform and Guide.
Deepak Shah
Reimbursements of expenses to employees are excluded from the definition of supply if the employee act as a pure agent of the company.so no RCM liability for 8500 (2000+2500+4000) if these expenses are incurred by employees acting as a pure agent. On 8000, since purchases are from the registered dealer, no RCM liability arises. For hotel expenses, since services are availed from the registered dealer so
no RCM liability. If insurance renewal premium is paid to an unregistered person then also no rcm liability since the limit of Rs. 5000 per day is not exceeded. So no RCM liability arises in your case.