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Integrated tax on RCM supplies.

Pralay Chakraborty (Service) (440 Points)

11 August 2017

U/s 9(4) of CGST Act any unregistered purchase is going to be taxed at the hand of recipient. How tax will be charged at the hand of registered person of Hyderabad for a Cab/auto service taken from unregistered person in a bangalore.

Will it be intra state or inter state.?

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4 Replies

Kishor Mehta (Senior Accountant) (31 Points)
Replied 11 August 2017

rcm would be applicable interstate only means cgst and sgst applicable in all case of rcm.

Pralay Chakraborty (Service) (440 Points)
Replied 16 August 2017

Dear Kishore,

Thanks for the reply. However it is mentioned "rcm would be applicable interstate only means cgst+sgst applicable"

1. How these two can be there in a single transaction "Inter state" & "CGST + SGST"

I guess you meant to say, intra-state rather "inter-state", correct me if I am wrong.

2. If it is to be considered as "intra state: then, can you please refer the section/rule/notification/circular etc. where it is mentioned all the RCM u/s 9(4) shall be considered as intra state? you can give interpretation of more than one section/rule etc as well in case specific provision is not availble.

Best,

Pralay Chakraborty