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Regarding RCM & FCM

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This query is : Resolved

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Yes, a GSTIN holder can indeed conduct both Reverse Charge Mechanism (RCM) and Forward Charge Mechanism (FCM) business activities simultaneously. However, it's important to note that tracking Input Tax Credit (ITC) can become more complex when managing both. For RCM, you'll pay the tax and claim it as ITC in your 3B, while for FCM, ITC needs to be monitored against your 2B.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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08 December 2023 ANY ONE GSTIN HOLDER PARTY CAN DO BOTH BUSUNESS (RCM & FCM) TOGETHER ??

RAJA P M

RAJA P M (Expert)
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08 December 2023 yes, both business activities possible. (but ITC follow up is difficult.)

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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15 January 2024 As per my understanding On RCM, we need to pay the taxes and simultaneously claim the same as ITC in 3B while ITC needs to be tracked in 2B for FCM cases.

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