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Reverse charge mechanism

04 August 2017

I am registered in Rajasthan and for business purpose I visit Mumbai and stayed there in restaurant which is unregistered under act ,I am liable to pay GST under RCM. so what will I charge in bill. i.e Maharashtra cgst sgst or igst.

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6 Replies

RAMESH D MODI (Proprietor) (4869 Points)
Replied 04 August 2017

if u book any expenses in the books of account u will have to pay gst in case of unreg. supply.

Mayank Chauhan (Associate) (65 Points)
Replied 04 August 2017

Maharashtra cgst and sgst.

CA Altamush Zafar (GST Consultant) (15986 Points)
Replied 05 August 2017

You will charge igst showing maharashtra as place of supply.

Mayank Chauhan (Associate) (65 Points)
Replied 05 August 2017

my place of supply is in Maharashtra so how can I deposit igst.....under reverse charge tax applicable to provide has to be seen. accordingly cgst and sgst.

CA Altamush Zafar (GST Consultant) (15986 Points)
Replied 05 August 2017

The person is not registered in maharashtra. If he charges cgst and sgst then sgst will be earned by rajasthan. Therefore igst will have to be charged showing place of supply as maharashtra. This way tax will be earned by maharashtra government.

CA Rohan jain (Sole Proprietor) (929 Points)
Replied 05 August 2017

GST is a destination based tax. Goods consumed in maharashtra, hence maharashtra govt should get tax.
you are registered in rajasthan, U procured service from maharashtra dealer. It is an inter state supply.

Definitely IGST will be levied here. How can you pay cgst and sgst in this transaction. If u pay SGST ,it will go to rajasthan govt. and entire concept of destination based regime goes wrong.

Pay IGST with place of supply as maharashtra.

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