GST Audit - RCM
This query is : Resolved
Quick Summary
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.)
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.
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.
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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Reopen of assessment proceeding
- Depreciation of fixed assets- coop housing society in mumbai
- TDS on Consultancy- Non DTAA
- Management System (IMS)
- EPF FULL & FINAL RULES IN 2026
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- FTS Taxable under 115A
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Gift Received from nonblood relative
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
