Reverse charge Mechanism

1. If the regd person purchases from outside the state from URD, then that URD has to register mandatorily.....

2. Limit of 5000/- is only for intra state purchases from URD, because of above mentioned reason...

3. Intra state purchase from URD-Book RCM take ITC...

    Inter state purchase from URD- Book RCM and take ITC...(practically avoid purchase from URD outside the state)

Dear Sir,

We were booked RCM on purchase from Inter-state URD, but while filing of GSTR2 for Input credit - all IGST paid under RCM on interstate purchases shown automatically as 'INELIGIBLE' section and hence we are not able to claim the said ITC.

Kindly advise.