sirs/madam,
I have a query, our company director has registered in GST portal and he raises invoices to the company under RCM. now how and where is he suppose to show this RCM in his returns ? GSTR 1 and 3B, please advise.
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RCM on Directors
Replies (7)
In GSTR 1 under b2b with tick in "reverse charge attract "
in GSTR 3B under exempted supplies...
in GSTR 3B under exempted supplies...
Thank you sir, GSTR 1 after ticking Reverse Charge Attract" what rate of GST to opt? Zero ?
Actual rate applicable on that service i.e 18%...it is aaded in liability of company after ticking in reverse charge applicable
Okay sir, wont it show to director as liability to pay if taken as 18%?
As u r ticking in rcm box...then it is automatically transfered in company liability
Okay, thank u so much
RCM applies only to the receipient of service and not for the service provider. I couldnt find reasons what for the invoices is raised by your director ( assuming other than salary ) is received from the company .
The company is liable to pay the tax under RCM and claim the same . No adjustment of ITC allowed.
When you book the expenses in the companys accounts then you need to show in your GSTR 1 under the heading Expenses liable to reverse charges thereby creating your liability. Payment will be reflected in GSTR 3B once you have paid and will automatically be included in the eligible ITC for the month in which the payment is made.
Hope your are cleared.
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