Go AD-Free with CAclubindia PRO for Rs 167/Month Only. Subscribe Now!

Rcm accounting entries

Accounts 376 views 6 replies

Anitya

287 Points Joined October 2018

Good Afternoon Members.

Please help me in accounting entries relating to RCM under GST on Transport Agency.

In May 2019, the taxpayer has a transport bill from ABC Transport Agency of Rs. 1000/-. RCM of Rs. 50/- (Rs. 25 each under CGST and SGST) will be payable by the taxpayer.

Do the taxpayer need to pay the RCM GST Output or it can be adjusted against GST Input available. How the accounting entries will be recorded for the same?

Please help.

Thanks

Replies (6)

prasad Nilugal

3924 Points Joined December 2017

Is a Transporter GTA ?. and issued consignment note .

CA Altamush Zafar

GST Consultant

15986 Points Joined March 2013

RCM Liability cannot be adjusted with credits will have to pay cash for it. However ITC can be claimed for GST paid in cash

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

No , you cannot adjust RCM payable against Your credit ledger. , have to deposit tax & adjust it against cash ledger

RCM Input A/c. dr
To RCM CGST payable A/c
To RCM SGST payable A/c

on payment :

RCM payable CGST A/c Dr
RCM payable SGST A/c Dr
To Bank