RCM SUSPENSION

Urd rcm suspended on manufacture. Rcm applicable only real state sector.

@ subhagan
"good clarification and information"

 

@ Pankaj Sir,

As being a regular taxpayer one need to discharge the RCM liability on Advocate Services and Security Personal and take credit of the same in GSTR-3B  My question is whether one should pay RCM on Advocate Services and Security Personnel in Agricultural company and booked same as expenses in Profit & Loss or no need to pay the RCM considering  the Agriculture sector is exempted from GST . Awaiting for your valuable suggestion.   

My views are as under:

Sec 24 of CGST Act , which provides the list of cases where registration under GST is mandatory, it reads as 'Notwithstanding anything contained in sec 22(1)...' . Hence, it means that sec 24 overrides sec 22 and not sec 23 (that provides relief from registration).

Hence, it may be argued that where my TO is 100% exempted, I am not liable to get registered..

However, conservative tax payer may pay GST and expense off the same to avoid litigation from department..

 

 

Sir, here i would like to bring your attention on that the agricultural company is registered and we will not claim any ITC on inward supply , we treat it as an expenses. But what about RCM .

My another question is , it is mandatory to reporting ITC on inward supply on goods and services in the GSTR-3B even though we are exempt ( Agricultural Company) from GST . We do not take credit of ITC as well.

On the basis of your views , you mean to say that it is better to pay RCM on advocate fees and booked it as an expenses. right sir?

Please do reply.

I agree with the suggestion given by Harshita. To add further, as the Company is registered, irrespective of nature of outward supply, the Company is liable to pay GST under RCM on receipt of services from an Advocate or Security personnel.

 

"good clarification and information"

My question is about RCM is applicable or not applicable in the case Purchase from Farmers by Registered Taxpayers.

Good clarification and information...

Dear Sandeep

As per Notification 13/2017 CT (R) (Advocate) & Notification 29/2018 CT (r) (Security Services)
Above both the Notification states that If the Recepient is Registered is required to do RCM & deposit the same .

So you are liable to RCM (As registered Recepient)

Yes you have report the same in GSTR 3B

Liability to be reported in Table 3.1, Row(C) .

Input to be reported in table 4(A)(3).

Reversal of Input to be reported in Table 4(B)(1) .

Good clarification and information

 

Good clarification and information...