RCM ON DEBTORS

27 September 2023

sir please guide me are RCM applicable on sundry debtors shows in balance sheet?
because department raise a notice u/s 73 and making a demand on sundry debtors.

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15 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (13464 Points)
Replied 27 September 2023

Dear Azhar Ansari

See, I will give you an example, You raise the bill of Rs 118000/- ( including GST 18000/- @ 18%) on Debtors or your Client for taxable supply. now Debtors will pay you 118000/- , after that you keep 100000/- and GST 18000 /- will deposit in Govt account, so I think department may have been raised query of Rs 18000/- GST may not be deposited in Government account .is this the Case ?. please reply .

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Azhar Ansari (66 Points)
Replied 27 September 2023

Respected prasad nilugal sir....aa I am a seller when I have raised a bill of rs 118000/- than I had pay gst 18000/- in gstr3b either I have received payment or not.

if purchaser have paid 50000/- and balance of rs. 68000/- was show in my debtor list of balance sheet
then the department wants that I have paid rcm @ 5% on balance 68000/-

I only wants to know that are the department demand was correct ot not?

prasad Nilugal ( GST Practitioner & Accounts ) (13464 Points)
Replied 27 September 2023

If purchaser is paying the tax to the Govt account, then in that Case, it's call RCM , however in yours case it is not RCM , it is normal Forward charge case , as every time you deposit tax in Govt account after collecting tax from purchaser.

Under which section demand has been raised ?. is there any thing mentioned in the notice. have you received notice in writing?

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Azhar Ansari (66 Points)
Replied 27 September 2023

Sec 73(I) of UPSGST & CGST ACT 2017

prasad Nilugal ( GST Practitioner & Accounts ) (13464 Points)
Replied 28 September 2023

Section 73(1) talks about, Tax not paid or short paid . what is the date , month year of the Invoice which is partially paid by the purchaser, as you mentioned in your reply or which financial year invoice belongs to .

sabyasachi mukherjee (22767 Points)
Replied 28 September 2023

But here short payment is not mentioned here.

Azhar Ansari (66 Points)
Replied 28 September 2023

FY 2017-18

prasad Nilugal ( GST Practitioner & Accounts ) (13464 Points)
Replied 28 September 2023

So , Invoice of 2017-18 , which was partially paid , still exists as Sundry Debtors in your Balance sheet as on 31/3/2023 for balance amount receivable along with GST ?. is this correct .

Azhar Ansari (66 Points)
Replied 28 September 2023

Exactly sir but I have already paid gst during the year on all taxable sale

prasad Nilugal ( GST Practitioner & Accounts ) (13464 Points)
Replied 29 September 2023

You should have close entry , after receipt of payment and passing receipt entry in the books of accounts , why it remains open and showing sundry debtors in the books of accounts till 31/3/2023 or you paid GST from your pocket .

Azhar Ansari (66 Points)
Replied 29 September 2023

Sir please tell me are GST liability was raised on Invoice issued by me or payment receipt?

prasad Nilugal ( GST Practitioner & Accounts ) (13464 Points)
Replied 29 September 2023

Of course after raise of invoice, but in your earlier reply you have mentioned GST already paid , then you should have reply that we have already paid GST , show all the payment details ( bank details ) . etc .

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Azhar Ansari (66 Points)
Replied 29 September 2023

Sir purchaser was paid gst or not but while generating of invoice I have paid all the tax of the month during filing 3b

prasad Nilugal ( GST Practitioner & Accounts ) (13464 Points)
Replied 29 September 2023

Ok , then you can reply them that we have already paid GST , mentioned all payment details ( Bank details ) and all other relevant documents , Inform them to confirm payment from bank also .

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