Easy Office
LCI Learning

RCM on Import on Services

This query is : Resolved 

14 February 2020 Dear Professions,

If any trader is importing e-journal service say Rs. 100 now he has to pay Rs. 18 as IGST on RCM (Total Purchase cost Rs. 118/-)
now, he supplied this service to the college which is exempt from this service. Now he supplied this Service for Rs. 100/-

Means sale of Rs. 100
purchase cost Rs. 118 (incl RCM)
as he has to RCM from his pocket? or there are any provisions on this service. and RCM is not allowable as a refund. Please clarify this situation.

15 February 2020 A refund in case of an inverted duty structure can be claimed.
A registered person may claim a refund of unutilized ITC on account of Inverted Duty Structure where the credit has accumulated on account of the rate of tax on inputs being higher and output services are exempted and notified by the Government on the recommendations of the Council.
However, in your case, the fact need to be checked whether the supply of e-journal to college falls under exempted services by Govt notification.

15 February 2020 Refer the link for more details on the taxability of e-journal to college

https://thetaxtalk.com/2019/12/10/levy-rate-of-gst-on-upply-of-online-educational-journals-and-periodicals-to-educational-institutions/




15 February 2020 Small correction n my earlier response:- ITC on accumulated credit can not be claimed where the tax rate on output supply is NIL OR IT IS FULLY EXEMPTED except for supplies of goods or services or both as may be notified by the Government on the recommendations of the Council.

The interpretation of the term 'Government notification' was incorrect.

15 February 2020 Thanks for your Reply.
But In this case, the total purchase cost is Rs. 118
and Sales of Rs. 100
Means Rs. 18 is to pay from his pocket. it is a burden on the Trader or is there any other procedure?

15 February 2020 In such a case include GST as cost in the price. In the bill selling price will be 118 with Nil GST.



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

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries