Reverse charge under gst (few cases)

RCM 1330 views 26 replies

Another question I have if input tax credit is available of RCM then why department going to collect it whether department will refund(ITC)  it...

Replies (26)

Another question I have if input tax credit is available of RCM then why department going to collect it whether department will refund(ITC)  it...

Under RCM, it is said supply of taxable goods or services on which GST is leviable. Goods means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply; Can be interpreted as Goods which will be supplied or agreed to be supplied on contract will be considered as goods under GST. Therefore, RCM will not be applicable on self-consumed goods.
Really I don't know where our country is going on???

We need to look out at every item of Profit and loss account. 

Office Expense like. Tea/coffee (exempt) No GST 

Stationery (Supply of Goods) GST and if stationery purchased from unreg dealer you have to pay GST.

Repairs and Maintanence(Supply of Service) GST and if Service provider is unreg you have to pay GST

Labour on contract (supply of Service) GST and if Service provider is unreg you have to pay GST

Salary and Wages (No GST)

ketan sir, please tell source of your information

Dear Rocky,

Section 9(3) empowers Govt to declares Supply of Goods/Service/Both for RCM

Section 9(4) The central tax (CGST)

in respect of the supply of taxable goods or services or both

by a supplier, who is not registered,

to a registered person

shall be paid by such person on reverse charge basis as the recipient

and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax

in relation to the supply of such goods or services or both.

 

SAME section 9 must be provided in STATE GST ACT for SGST RCM. You may refer your state GST Act.

 

Mostlly problem will be there if we procures GOODS or SERVICES(as taxable supply) from unregistred person.

I hope my sources of info would sufficient. :)

ketan sir, you are saying that specific list of goods on which RCM is applicable is not available..
but you explained that tea , coffee exp. will not br covered and stationary purchase will be covered.

actually, govt. has to give clarrification on this topic. because we all are confused.

Becuase Tea and coffee is exempted sold loosely-( not sold under brand name)

FOR RCM GOODs

Condition

1 We are registred under GST (recipient of GOODs)

2 Supplier is unregistred under GST ( even not voluntarily)

3 supply is TAXABLE (goods supplied must be TAXABLE otherwise it will not attract GST at all)

Above conditions must be fulfilled

Nothing has been yet prescribed for reverse charge mechanism for goods under GST except section 9(4.. It is expected that it will follow the same treatment as reverse charge mechanism for services.The list of goods on which reverse charges apply has not yet been issued by CBEC

supply of food and drinks in a restaurant is chargeable @ 12%
so GST is applicable on tea and nasta

please describe completer procedure of Reverse Charges application, specially on transporters

 

If RCM is attract on GTA, then why some of GTA is charging GST???


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