20 September 2017
dear Sir/madam
purchasing some goods/services out side the state then I have to pay IGST under RCM if your answer is yes
now the question is how a unregistered dealer supply out side the state please provide me guidelines my purchasing transaction is invalid or correct
20 September 2017
Section 24 (i) of CGST Act provides for compulsory registration of a person who is making any interstate taxable supply.
SECTION 5(4) of IGST Act, 2017 says: "The integrated tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both."
Reading through both Sections we can understand that even though Section 24(i) of CGST Act provides for a compulsory registration for such supplier, still Section 5(4) of IGST Act tries to bring unlawful interstate taxable supplies under tax net.
So RCM will be applicable on Interstate purchases from URD, and you can take input credit for the same. Making Interstate Supplies without GST Registration is Default on Suppliers end and your transaction does not become invalid due to same, RCM will however be applicable
20 September 2017
IGST RCM can't applicable.
Bcoz, URD can't make inter State supply...
Also you can go to other States then buy from URD. At the time you are also a URD in other state...
25 October 2017
@sumeet
we are purchase form unregistered outside the state and pay RCM as IGST in July month but now I m ineligible to get ITC Plz suggese
CAclubindia
