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RCM Related

Shubham (student) (73 Points)

14 May 2020

If i buy goods from unregistered dealer for reselling and those goods are not notified for RCM can i buy them and sell them directly by paying the GST calculated on my invoice price and not paying under RCM and claiming ITC. Also he is not providing invoice because his business of not of that scale but goods are very cheap. Should i go for it or is there something wrong in it as i will not be having proof of purchases but only of sale ?

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5 Replies

Asha Kanta Sharma (Manager - Finance & Accounts) (10519 Points)
Replied 14 May 2020

Not possible. You can not create a substitute like RCM from your end

1 Like

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 14 May 2020

As per Notification 7/2019 CT (r) RCM on inward supply from URD is restricted to class of person ie Promotor/developer .

So if you are not promotor/Developer , then not required to issue Self Tax Invoice as prescribed in section 31(3)(f), Yes can issue payment voucher.

Hence cannot do RCM & avail ITC

1 Like

Shubham (student) (73 Points)
Replied 15 May 2020

Thankyou so much for your reply
That person is not having proper shop name and will not issue any invoice to me for goods purchased by me and i am registered so will there be any issue when i am not having any purchases but only sales in my books?

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 17 May 2020

YOU NEED TO TAKE SOME ESTIMATE OR BILL OF SUPPLY COPY IN REGARD TO PURCHASE FROM URD & BOOK THE SAME UNDER EXEMPTED PURCHASE IN YOUR BOOKS OF ACCOUNT.