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Interstate purchase from URP 5(4) IGST

Raman Singla (Accounts Services) (167 Points)

13 August 2019

we purchased services from interstate URP and not deposit RCM DURING JULY 17 TO 13 OCT 2107 refer to sec 5(4) of IGST...WHAT WILL BE IMPACT...

SHOULD I DEPOSIT RCM WITH INTEREST OR NOT...AS WE WILL BE NOT ABLE TO TAKE ITC ON THAT AS TIME LAPSE TO TAKE ITC FOR F.Y. 17 -18

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6 Replies

Kallol Sarkar (Accountant) (188 Points)
Replied 14 August 2019

Pay with interest in Cash by Form DRC-03 in GST Portal.

No ITC available

Sridevi (Accountant) (380 Points)
Replied 14 August 2019

Hi,

What will be the Interest calculation?

Kallol Sarkar (Accountant) (188 Points)
Replied 14 August 2019

From the date of liability till the date of payment @ 18% per annum

subhagan sreerangam (7039 Points)
Replied 14 August 2019

No ITC available,Pay the tax with interest @ 18℅ per year by cash through DRC-03 Form.

Raman Singla (Accounts Services) (167 Points)
Replied 14 August 2019

I accept it but my my question is INTERSTATE PURCHASE NOT FALL IN PREVIEW OF 9(4) OF CGST....AS IT IS FALLS IN 5(4) OF IGST....BUT AS PER SEC 24 OF CGST ACT IT IS NOT ALLOWED UNREGISTERED PERSON TO SUPPLY INTERSTATE....BUT IT HAPPENED...NOW IT CONTRADICTS WITH 5(4) AND 24...
IS LIABILITY ARISE TO PAY TAX WITH CONTRADICTION....

Kallol Sarkar (Accountant) (188 Points)
Replied 14 August 2019

Section 23(2) CGST Act Say "The Government may, on the recommendations of the Council, by notification,specify the category of persons who may be exempted from obtaining registration under this Act."

Now Refer to Notification No. 10/2017– IGST dt. 13.10.17 which exempts a service provider from obtaining registration whose turnover is upto Rs. 20 Lacs..

Therefore, you, being the registered person, have to pay the tax on RCM basis.