Reverse charge mechanism


Accounts & Finance Executive

Hi Sir,

We made, Exempted Goods Sales of 80% EOU & 20% Domestic. and also we have GTA/Legal/Director/Import Services ! but till now we are not paid RCM for above services in GST Returns, Whether RCM (Reverse Charge Mechanism) is applicable for our business unit or not. Please explain me !   

 
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Professional - CA firm

Hi lokesh,

SECTION 9(3) of CGST ACT speaks about RCM,

It does not give distinction based upon your sales, accordingly you are required to pay tax for the aforementioned under RCM along with interest as I understand you have not paid the same yet.

For further query kindly reach me out.

HAPPY TO HELP!!

MOHIT JAGNANI
 
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thank you and congratulations
 
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Tax Professional & Advisor

RCM are under GST Section 9(3) which cover your service and till the date you are not pay and it will applicable so you must pay the same in Current month and practically there is no requirement of pay Interest on the same ( as per GST Act interest also pay with delay payment)
And after making payment you can utilise the same in same month in Input Credit.. So there is no worry if you are not pay RCM ti the date but now pay and take credit..

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Accounts & Finance Executive

Thanks for the reply's 

Lokesh L

 
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