RCM-Payment voucher

RCM 549 views 2 replies

Natarajan Srinivasan

3 Points Posted on 12 November 2017

As per the notification no.36/2017- Central tax(rate) dated 13.10.17, sale of scrap by Central Government to any registered person falls under RCM vide section 9(3) of CGST Act,2017.
I work in Indian Railways dealing with sale of scrap. As per the above notification, scrap purchasers are liable to pay GST directly to the concerned tax authorities. My doubts in this regard are:
1) Will any Railway official be held responsible at a later date, if the scrap purchasers have not made payment of GST under RCM?
2) As per Section 31(3)(g) of CGST Act,2017- scrap purchasers shall submit a payment voucher to the supplier(i.e., to Railways) at the time of making payment. Can it be considered that submission of the above payment voucher to Railways by Scrap purchaser would indicate that the payment of GST has been done by him/her?
Please clear my above doubts. Thank You.

Replies (2)

CA_Suhani

Chartered Accountant- GST Consultant- In

169 Points Posted on 13 November 2017

1)Will any Railway official be held responsible at a later date, if the scrap purchasers have not made payment of GST under RCM?
Answer: NO, the purchaser of scrap shall himself be liable.

2) As per Section 31(3)(g) of CGST Act,2017- scrap purchasers shall submit a payment voucher to the supplier(i.e., to Railways) at the time of making payment. Can it be considered that submission of the above payment voucher to Railways by Scrap purchaser would indicate that the payment of GST has been done by him/her?
Answer:Payment Voucher will depict only the basic amount which has been paid to the railways authority. There is no need to mention there that GST has been paid on the said amunt. Issue of Payment voucher can never be considered as a proof of payment of GST by the purchaser to the government.

Natarajan Srinivasan

3 Points Posted on 13 November 2017

Sir,Thank You for clearing my doubts. I have another doubt in this regard:
How to ensure that the purchaser has paid GST to the government under RCM? If an affidavit is obtained from every purchaser that he/she is solely responsible for payment of GST under RCM and that no Railway official shall be held responsible for the same, will it suffice?