We are a company in Delhi.
I have to pay commission to a person from Mumbai who helped us sell a machine in Mumbai. This person does not have a GST No. since his total income is less than 20L pa.
Thus I have to levie RCM. Now what kind of GST will be applied, IGST or SGST+CGST?
If IGST is to be applied, then how do I claim ITC?
Irrelevant answer
Why is it mandatory? Under service tax also it was not mandatory till 10L
and now under GST it is not mandatory till 20L and thereafter he can always be a composite dealer.
Since his main business is to earn commission on sales, he can ignore ITC and be out of the purview of GST.
My problem is how to declare RCM on payment of commission to unregistered dealer??
What will be the place of supply in this case? If we can declare Delhi as the place of supply then there is no problem but if Mumbai is the place of supply then I have a problem since I will not be allowed to claim ITC of the RCM charged.
And logically, the place of supply should be Mumbai since the end customer is also in Mumbai, dealer is in Mumbai and the final supply of machine is also in Mumbai...
How can we tackle this issue?
If you have filed your GSTR 1 & 2, you will realise that interstate purchase from unregistered party is not eligible for ITC...
You may take anything in your books but what you file in return will be applicable...
If you have been able to take the ITC for unregistered interstate purchase, then please let me know under which column you have taken this
MR. Raja... You have not read the problem... please read the problem and then reply...
CAclubindia
