Impact of rcm in gstr-3b dealing with banks

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Keyur Kotdiya

Practicing whole time CA

14 Points Joined January 2016

Hi!

I want to clarify that my registered client providing services to the Banks and upto July 2018 client issued normal invoice with GST 18%. But now bank refused to take GST invoice and said that they will paid GST under RCM so only issue invoice without GST. There is option isn GSTR-1 for filling invoice under RCM but there no such option in GSTR-3B as outward supply under RCM and taxable supply not accept as my CGST and SGST is zero so where to show such outward supply amount in GSTR-3B??

thanks

Replies (15)

Jhalak Jain

118 Points Joined March 2018

You are required to furnish the details in table 3.1 under inward supply liable to tax on reverse charge basis.

Keyur Kotdiya

Practicing whole time CA

14 Points Joined January 2016

No That's is not the problem because this is outward supply and GST has been paid by the Banks under RCM but i don't have any tab for showing that in my client GSTR-3B.

Asif Rahaman

95 Points Joined August 2018

where are you show in GSTR-1 ?

ACA Sarita Laddha

Practicing CA

1225 Points Joined May 2018

There is no such option in GSTR 3B.

In my opinion, this should be reported under 3.1 (a). Taxable value should include the value of outward supply under RCM but the tax amount should be without considering the outward supply under RCM.

Asif Rahaman

95 Points Joined August 2018

RCM is not applicable on Outward Supply. Supplier are liable to pay GST on Supply. RCM applicable on recipient if dealing with unregistered party.

Keyur Kotdiya

Practicing whole time CA

14 Points Joined January 2016

In GSTR-1 I have shown as normal bill in b2b section but only difference is that i am tick the box showing payment made by suppliers under RCM but that option not in GSTR-3B. If i will show in table 3.1(a) then there must be GST amount entered in respective boxes so 3.1(a) also not available.

ACA Sarita Laddha

Practicing CA

1225 Points Joined May 2018

Not required to show amount in respective tax column of 3.1.a. for outward supply under RCM.

GSTR 1 and 3B will be tallied only in this way. There is no other option to report such transaction and in my opinion, this is the reason that tax columns of 3.1.a are not auto populated and we have to enter amount of tax considering the impact on taxable outward supply.

Rizwan Ullah

Asst. Manager

22 Points Joined June 2018

????

pritesh

CA Final student

7101 Points Joined April 2018

You have to issues GST invoice if you are registered.

rcm is applicable only if you are not registered.

Keyur Kotdiya

Practicing whole time CA

14 Points Joined January 2016

I have tried to enter in table 3.1(a) but if i will not insert CGST/SGST amount then i will not able to confirm the same because it is mandatory to insert figure of GST with net taxable supply. In second scenario if i will input GST figures then my liablity create and i have to paid it so that's also not possible.

Asif Rahaman

95 Points Joined August 2018

you are going to wrong way.. You have pay GST amount... explain to Bank. Bank can't do that. you both are registered person.. RCM not allowed to both of you..

ACA Sarita Laddha

Practicing CA

1225 Points Joined May 2018

If you only have outward supply under RCM, then no need of GST registration and no need to file return.

In your case, if you are registered and submitting return, then you must have outward supply under normal mechanism as well as under RCM. So, your taxable value of outward supply must include outward supply under normal and under RCM and hence tax column is not supposed to blank.

saurabh sawlani

Self employed

2193 Points Joined March 2018

show your outward taxable supply in gstr3B table 3.1(C) under "other outward supplies (nil rated, exempted) & in gstr1 show your sales in B2B column considerd as " supply attract reverse charge"

Regards