Asha Vaishnava (Manager - Finance & Accounts) 09 October 2019
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.
Sivaramakumar (GM-ACCOUNTS) 18 November 2019
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.