I am a metal scrap trader i have a doubt that if i purchase metals from local scrap supplier at 30.5 without gst (consider the market price is 28 plus gst ) and i sale it with gst at The price of 26.5 plus gst can i consider the payment i had given to the local seller as 25.85 plus gst by considering in rcm method and pay the excess rs 0.12 to gst portal offseting it or i need to pay rs 4.65 to gst portal to claim itc and reverse it
You must pay RCM GST on the actual purchase price (₹30.50), not on a recalculated value.
RCM tax = ₹5.49, which you can fully claim as ITC.
Your output GST is ₹4.77, which is covered by the ITC.
You neither owe extra GST nor can you restructure the purchase value.
Thank you for your response
V.K. Ranjan & Co(Chartered Accountants)
New Delhi
B.Com
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