About self invoicing under rcm

This query is : Resolved

Praveen (Querist)
Follow

19 September 2017 Respected Experts ,
Is it mandatory to raise self invoice for purchase from unregistered dealers ? Can we make RCM provision through journal voucher entry. Please guide.
Thanks

Chhatra Singh Dugar

Chhatra Singh Dugar (Expert)
Follow

19 September 2017 Under provisions of GST Act you have to raise invoices for URD purchases. That is not a big issue. If you have any RCM obligation you need to pay it first in cash. Then you may avail ITC. You can not adjust RCM against ITC and pass a journal entry in your books.

Praveen

Praveen (Querist)
Follow

19 September 2017 @Chhatra Singh ji, Thanks for your valuable reply. Kindly note that presently i am going RCM entry through JV suppose i have purchased some goods from unregistered dealer of Rs.10000/- my entry in book is as under .
Purchase Unregistered a/c Dr 10000/-
Input SGST- RCM Dr 900/-
Input CGST-RCM Dr 900/-
Cash /Bank A/c Cr 10000/-
SGST Payable-RCM Cr 900/-
CGST Payable-RCM Cr 900/-
Is it correct entry or not ? how to raise self invoice . Our ERP is not allowing to raise invoice for self please guide.
Thanks & Regards

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now