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Rcm query

RCM 247 views 5 replies

Suppose I'm Composition dealer and I am paying rent to my landlord rs.20000 p.m.,then I have to pay tax on RCM basis, and I can not claim credit on the taxes paid, Does this mean hardship to composition dealers??????

Since they can't claim input tax credit.

Replies (5)
Yes. You are absolutely correct.

Yes its the way it is...

But only beneficial route is your land lord is registered in GST. So he will be issuing you Rent Invoice charging GST and adjust against his ITC.
Am I correct ?
But sir ....even if landlord is registered under GST, then also composition dealer can't avail Input tax credit. So GST paid under RCM by composition dealer will be cost to dealer since they can not claim credit for it.
When landlord is regd and issues rent invoice charging GST what is need of composition dealer paying GST under RCM


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