Reverse charge calculation

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Purnima (Querist)

17 August 2017 Case Study:Daily expense of a dealer include Rs 2500 of unregistered purchase till 30th July.But on 31st he also made payment to landlord who is unreg under gst of rs 120000 (for the month of July).If I exclude rent transaction no liability to pay under rcm arises for the whole month.Now my question is whether I need to apportion 120000 day-wise on the basis of service period to calculate 5000 criteria(i.e 4000 approx+2500=7500) or I should just pay gst under rcm on 120000 and remaining 77500 will get excluded.

Anil Ahuja

Anil Ahuja (Expert)

17 August 2017 CGST Exemption from intra-state supplies of goods/ services received by registered person from unregistered supplier if aggregate value of such supplies from any or all the suppliers is upto 5000/- per day.* 👉🏻In case, the aggregate value of supplies from any or all the suppliers *exceeds 5000/- per day,* CGST would be payable under Reverse charge and a *consolidated invoice can be issued at month end for such supplies so for 31july on 120000 plus any other purchase from unregistered dealer u hav to pay gst under RCM total 120000 comes under a single supply , no need to apportion it for whole Month in my opinion

Purnima

Purnima (Querist)

17 August 2017 no doubt i will be paying gst under rcm on 120000 but what about other unreg supply of rs 2500.will they be exempt as per 5000 criteria bcoz if i go as per average per day calculation then it comes to 6500 approx and consequently 2500 per day expense which was outside gst purview comes under the gst net and i have to pay gst on the same as well.

Anil Ahuja

Anil Ahuja (Expert)

17 August 2017 no need of average computation per day transaction s as per notification anyway u have to pay sgst on that even if it is less than 5000 per day only sgst portion is exempt

Anil Ahuja

Anil Ahuja (Expert)

17 August 2017 *cgst exempt

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