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Unregistered purchase

Sunil Kumar Mallia (Accountant) (46 Points)

30 May 2018

Sir,

We received a bill from unregistered works contractor worth Rs 10 lakh without GST. He is claiming that his turn over is below 20 lakh and need not to registered under GST. Whether we require to ask him for a declaration regarding his annual turn over or charge GST in RCM method ? plz suggest.

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12 Replies

Amit (Accounts ) (526 Points)
Replied 30 May 2018

Reverse charge applicable..
you can claim credit later.....

1 Like

RAJA P M ("Do the Right Thing...!!!") (126993 Points)
Replied 30 May 2018

RCM not applicable....

Also no need declaration from the contractor.

1 Like

Amit (Accounts ) (526 Points)
Replied 30 May 2018

refer Section 9(4) to CGST Act / Section 5(4) of IGST Act]

1 Like

RAJA P M ("Do the Right Thing...!!!") (126993 Points)
Replied 30 May 2018

Originally posted by : Amit
	refer Section 9(4) to CGST Act / Section 5(4) of IGST Act]

Dear Mr. Amit.,

Thank you for the reference...

But.,

What about the under Section 9(4) of the CGST Act, 2017/ Section 5(4) of the IGST Act, 2017 in CURRENT SITUATION...?

1 Like

RAJA P M ("Do the Right Thing...!!!") (126993 Points)
Replied 30 May 2018

RCM Suspended till 30 June 2018: CBEC Notification 10/2018 Central Tax Rate dt. 23 March 2018

2 Like

prashant jain (Article Assistant) (42 Points)
Replied 30 May 2018

First, you ensure that you are registered dealer or not. Secondly, do you want to take input credit of tax on Bill Amount, if yes then you require to issue taxable invoice on its own.

"This was also a setback to the URD’s whose turnover limit doesn’t exceed 20 Lakhs thereby not legally required to get registration. In order to run there business they will have to get themselves registered under GST voluntarily otherwise no registered Dealer would dealt with them in any way."

1 Like

Amit (Accounts ) (526 Points)
Replied 30 May 2018

thank you.....sir....
pointing out my error

2 Like

Sunil Kumar Mallia (Accountant) (46 Points)
Replied 30 May 2018

@ Raja P M sir ,finally I have to make a entry without GST by deducting TDS...OK

RAJA P M ("Do the Right Thing...!!!") (126993 Points)
Replied 30 May 2018

Originally posted by : Sunil Kumar Mallia
	@ Raja P M sir ,finally I have to make a entry without GST by deducting TDS...OK

Yes... You can as per Your view...

Note :

The sec 9(4) of CGST act related RCM is applicable from 01/07/2017 to 12/10/2017. In the said periods You must pay RCM tax if you are received from URD.