Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Gst related query

321 views

Save Share

saurabh sawlani

Self employed

2193 Points Posted on 17 January 2021

sir/mam,

farmers ko 2 lakh se above cash payment kr skte hai kya?? humari firm farmers se kapas purchase krti hai or single bill ki total invoice value bhi above 2 lakh hai or farmers ko payment bhi pura cash me hi hota hai

Replies (6)

Quick Summary

This discussion clarifies that farmers can receive cash payments exceeding £2 lakh for agricultural produce like cotton, as per GST Rule 6DD. It also addresses a query regarding Reverse Charge Mechanism (RCM) claims, confirming that RCM payments and their corresponding input tax credit can be claimed within the same month.

mayur sharma

133 Points Posted on 17 January 2021

Yes as per rule 6DD exception to cash payments.

Payment in excess of 10000 in cash will not be treated as PGBP income if payment is made for purchase of agriculture or Forest products.

CA Rashmi Gandhi

Chartered Accountant

86505 Points Posted on 17 January 2021

As per Rule 6DD , you can make payment to Farmers more than Rs. 2,00,000/-

saurabh sawlani

Self employed

2193 Points Posted on 17 January 2021

Thanks mayur sir aur rashmi sir, ek or query hai meri ki RCM same month me claim kr skte hai yaa jiss next month me... for example ki agar muje kapas per rcm dec. month me pay krna hai toh uska input dec. month me hi claim kru ya next month... muje isme confusion hai..