Rcm (reverse charge mechanism)
This query is : Resolved
05 May 2018
As you know the threshold limit of purchase from unregistered dealer is Rs. 5000.00 under RCM, What should I do if I have 18 Branches under one GST registration?
1. Every 18 branches can spend or purchase from unregistered dealer upto Rs. 5000.00 each. And no RCM liability will levy on me.
OR
2. In all 18 branches we can only spend or purchase from unregistered dealer only upto Rs. 5000.00 . I mean all 18 branches expenses or purchase will be treated as one. And what will be the RCM liability.
Please reply
1. Every 18 branches can spend or purchase from unregistered dealer upto Rs. 5000.00 each. And no RCM liability will levy on me.
OR
2. In all 18 branches we can only spend or purchase from unregistered dealer only upto Rs. 5000.00 . I mean all 18 branches expenses or purchase will be treated as one. And what will be the RCM liability.
Please reply
05 May 2018
second option...
but, Reverse Charge Mechanism (in case of supplies made by unregistered persons to registered persons) delayed till 1st July 2018
but, Reverse Charge Mechanism (in case of supplies made by unregistered persons to registered persons) delayed till 1st July 2018
20 July 2025
Threshold Rs. 5,000 under RCM — Is it per branch or overall?
The Rs. 5,000 threshold is per GST registration, NOT per branch.
So, if you have 18 branches operating under a single GSTIN, all their purchases from unregistered suppliers are aggregated.
This means the total purchases from unregistered dealers by all 18 branches combined should be within Rs. 5,000 to avoid RCM.
If the total exceeds Rs. 5,000 (for example, combined purchases from unregistered dealers across branches is Rs. 6,000), then you have to pay GST under RCM on the entire amount (or as per the applicable rules).
The Rs. 5,000 threshold is per GST registration, NOT per branch.
So, if you have 18 branches operating under a single GSTIN, all their purchases from unregistered suppliers are aggregated.
This means the total purchases from unregistered dealers by all 18 branches combined should be within Rs. 5,000 to avoid RCM.
If the total exceeds Rs. 5,000 (for example, combined purchases from unregistered dealers across branches is Rs. 6,000), then you have to pay GST under RCM on the entire amount (or as per the applicable rules).
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
- Taxable or Tax exempt
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- TDS Deducted AY-2013-14 Not Reflected in 26as
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- ADVANCE PAYMENT OF ADVOCATE
- NRI starting business in India
- CREDIT NOTES WITHOUT GST
- FORM 141 SDV query
- Condonation . E-Verification of last year return .
- Eway bill generation from place other than registeted
- 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
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
