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Can anyone tell me why RCM has to be paid only in cash...?

RCM 3445 views 5 replies
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Delhi
1339 Points Posted on 10 October 2019

why tax on rcm basis has to be paid in cash under gst....??

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On 10 October 2019 at 20:23 Report
Replies (5)
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Delhi
1339 Points Posted on 10 October 2019

Because as per section 49(5) ITC has to be utilised only for payment of output tax and tax on rcm basis is input tax liability , Therefore it has to be paid only through e-cash ledger.....

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On 10 October 2019 at 20:25
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Chartered Accountant
1996 Points Posted on 10 October 2019
As per rules it is like that
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On 10 October 2019 at 20:51
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Manager Finance & accounts
200 Points Posted on 10 October 2019
In other than RCM registered person pays GST tax to vendor along with his bill payment. hence cash outflow. in case of RCM there is no payment of GST tax to vendor.hence need to be paid directly to govt RCM tax
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On 10 October 2019 at 21:43
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"Do the Right Thing...!!!"
128152 Points Posted on 10 October 2019
Yes... I fully agreed to Mr Daxesh view...


@ Mr Daxesh.,

very good view and explanation...
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On 10 October 2019 at 22:45
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GST Practitioner
55067 Points Posted on 10 October 2019
Its prescribe in Rule 36(1)(b) of CGST Act : credit is available on invoice issued accordance to provision of clause (f) of Section 31(3) of CGST Act, SUBJECT TO PAYMENT OF TAX
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On 10 October 2019 at 23:19


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