25 November 2021
For one of my client GST audit is conducted for FY 2017-18. I have below queries
1. Is RCM applicable from July 20,2017 to Oct 13, 2017. If yes is it applicable on all the expenses including Salaries, Labour payment, Logistic expenses, URD purchases and Rent?? (Because he was asked for Expenses ledger for that period and also I informed like need to pay 18% tax on those expenses with int).
2. Client claimed around 32 Lakh(Actual ITC, payment made to vendors) IGST ITC, but according to 2A vendor filed GST for 17 Lakh. Now client asked to pay the remaining 15Lakh with 18% interest or asked to us talk with vendor and get the GST paid. (One of the major vendor, client made payment of 17L IGST, but vendor filed the return only for 8L IGST according to 2A. Due to some deficiency in supplies, part of payment was not made but ITC claim is taken for that amount as well and the proceedings are going on court.)
25 November 2021
1) Yes, you are right. RCM provisions were applicable at that time. 2) we can always take the shelter that gstr2a is not a legal backing to claim ITC provided the buyer satisfies all the conditions of section 16(2) of cgst act to claim ITC.
25 November 2021
1) RCM was applicable on unregistered supplies including expenses but not on salary 2) GSTR-2A was not existent at that time as per law. Moreover there is no legal provision for that period that says to match with GSTR-2A. But in your case where the supplies were deficient and the supplier has shown less amount therefore in that case you will require to reverse ITC with interest.
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