22 July 2017
You simply book the amount paid as expense and no credits shall be taken. It will neither be treated as RCM nor Non Taxable. In your GSTR-2 a detail will have to be filled in a separate section for supplies received from composition dealers.
22 July 2017
1)A Hotel cannot take composition scheme. Therefore if bill is without GST then it is under RCM. Where services are exempt then GST shall not be payable on RCM, say for example the room tariff of the hotel is less than Rs. 1000 then no RCM to that extent. 2) Meals and dinners without bills will also come under RCM. At the year end in annual return of GST a reconciliation of financial statements and GST returns will need to be provided. The expenses will also have to be claimed for income tax purposes. Therefore GST will have to be paid on RCM otherwise it will lead to tax evasion.
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