Double Taxation in RCM

Rules 457 views 28 replies

Hello sir , 

I am Registered with GST and i am buying Mobile Recharge Stock like 10000 stock from retailer (Who runs mobile recharge shop) .
There are many retailers like this , Like 100 retailers . I purchase 10000 stock from multiple retailers who are not registered with GST .

Now according to RCM i need to pay GST on that recharge . But that same product is already PAID with GST with their distributor or company .

 

So as RCM there will be double taxation on this .

So for 100  Rs  MRP recharge i will have to pay 15 rs in RCM and the same item was paid with GST amount of 15 Rs .

So final GST on 100 will be 30 .
How to avoid double taxation on this ?

 

NOTE: If you say stop purchasing with retailer who is not registered with GST then it means just need to close down company

 

Replies (28)
How to avoid double taxation on this ?

How it's double taxation...???

Because i am registered party and i need to pay GST on behalf of retailer , and for the same product Their Distributor already paid GST on Behalf of retailer

ITC can be claimed on tax paid on RCM basis, subject to the act and rules. Hence, no double taxation.
RCM IS CHARGED under different conditions.
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How can i claim GST from retailer who is not registered with GST ??

Originally posted by : Rajdeep kumar
How can i claim GST from retailer who is not registered with GST ??

@ Mr. Rajdeep kumar,

Don't being confused...

GST nt available if purchased from URD.

But, If You pay through RCM then You claim that RCM payment as Input Tax.

I can not pay GST as RCM basis because 18% paying in cash is huge , Like we have daily 10 lakh rs purchase from un registered means paying daily 1.8 lakh in cash daily which is not possible .

I am just paying gst on what earn like we earn 1000 Rs on daily sales of 10 lakh , 

so i pay cash 180 Rs as GST , Is this way correct ?

 

So your business double taxation not gst.
Conditions in which rcm is charged.
RCM charged why
Once refer Sec 9(4) of CGST Act 2017.

https://www.yesbank.in/en-IN/business-banking/yes-gst/knowledge-articles/reverse-charge-buying-from-unregistered-dealers#

 

Read above article . 

This is what i am asking. I am buying product of 500 MRP from URD which is already GST paid then again i need to pay GST in RCM ?

As article clearly its it will leads to Double Taxation 

Originally posted by : Rajdeep kumar
https://www.yesbank.in/en-IN/business-banking/yes-gst/knowledge-articles/reverse-charge-buying-from-unregistered-dealers#

 

Read above article . 

This is what i am asking. I am buying product of 500 MRP from URD which is already GST paid then again i need to pay GST in RCM ?

As article clearly its it will leads to Double Taxation 

(which is already GST paid ...??)

this from URD. right? Then

Who is already paid...??

Where is already paid...???


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