Under GST law, the gst on payments of certain nature are to be paid om reverse charge basis. and the ITC of the same is also available.
Then, why is it need to first declare the rcm liability and even take credit because effectively no tax gets paid.
Why would government do such? Just for the sake of reporting ?
Firstly Concept of RCM is earlier available in Service tax , As in Goods and services tax concept of this RCM is carried forward,
Now the trader also have to paid RCM and for there relief refund is given.
Govt. want to trace these activities.
CAclubindia
