Reverse charge mechanism-gst



Dear All,
We are running media based company and we have enrolled for GST. We would like to know whether we are entitled for reverse charge mechanism. Do we have to pay tax on the any inward supplies which is from unregistered dealer? If yes, please let us know what are the criteria.
We receive the bills without GST from the unregistered dealers. We are in a doubt whether we need to pay the GST on the reverse charge mechanism.

 

 

 
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Article Assistant

As per section 9(4) of CGST Act 2017, if a registered person receive goods or services or both upto Rs.5000/day(aggregate) from unregistered suppliers, it is exempted. But it is applicable only in the case of intra state supply of goods. If the aggregate value of such supplies exceeds Rs.5000/day, then GST will be payable on reverse charge basis.(Notification No.8/2017 dated 28th June 2017).

 
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PROPRIETOR - P M RAJA AND CO (TAX CONSULTANTS - AUDITORS)

Yes. You are registered under GST then you received the Goods/Services from URD you ll be pay tax under RCM base.

The small relaxation is Rs. 5000/day (a whole day) you don't pay tax under RCM.... If it's exceeded the you fall under RCM.

 
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thanks for prompt reply.


can I claim the input tax credit on the same?

while paying RCM do I need any documents from the URD.? like PAN or something.?
 
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PROPRIETOR - P M RAJA AND CO (TAX CONSULTANTS - AUDITORS)

No. The documents required if you sell goods to URD for some GST rule.
But, You ll be purchasing then don't want any specific documents. Just you receive bills only....
 
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Am I eligible for claim the ITC for RCM.?
 
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PROPRIETOR - P M RAJA AND CO (TAX CONSULTANTS - AUDITORS)

Yes. You can get ITC from that RCM related taxes.
But, First of you ll be pay Tax under RCM basis......
 
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what will be rate of GST under RCM.
 
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PROPRIETOR - P M RAJA AND CO (TAX CONSULTANTS - AUDITORS)

Tax rates based on the goods / Service related. No more specific rate for RCM....
 
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I have purchased good like aanaj ( wheat , rye jawar bajara
 
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