Input tax credit

This query is : Resolved

VIPIN NAIR (Querist)
Follow

22 July 2017 Dear Expert ,

I have received an Bill from Resturant ( This Bill has No GST charged ) but the resturant is covered under Composition scheme of GST.

My Question : How to Book Bill ? ( Under RCM or Non Taxable )
I am using SAP System in my Orgnization.

Pls support your answer with Section and Notification.

Thanks in Advance

CA Altamush Zafar

CA Altamush Zafar (Expert)
Follow

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.

Message likes : 1 times

VIPIN NAIR

VIPIN NAIR (Querist)
Follow

22 July 2017 1. If Hotel Bill no GST , whether it will come under RCM ?
2. Meals and Dinner expenes but no Bill whether RCM ?

CA Altamush Zafar

CA Altamush Zafar (Expert)
Follow

22 July 2017 The hotel bill is for accommodation or restaurant of that hotel?

VIPIN NAIR

VIPIN NAIR (Querist)
Follow

22 July 2017 Seperate Bills

CA Altamush Zafar

CA Altamush Zafar (Expert)
Follow

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.

VIPIN NAIR

VIPIN NAIR (Querist)
Follow

22 July 2017 pls can u provide section no for it

CA Altamush Zafar

CA Altamush Zafar (Expert)
Follow

22 July 2017 Section 9(3) and (4) and section 10 for composition along with rules.

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