Service provided by registered entitity

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2017 service provided by registered entity to unregistered entity , whether registered entity can adjusted set of GST payable from GST input.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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25 July 2017 The registered person will raise bill normally. He will charge GST from the unregistered person. On payment of tax to government the input tax credits shall be adjusted.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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25 July 2017 No you can't set off GST on RCM from Input.

Message likes : 1 times

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CA Altamush Zafar

CA Altamush Zafar (Expert)
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25 July 2017 Yes, Maam is right. GST on RCM needs to be paid from Electronic Cash Ledger, rest can be paid from credits.

Amol S Joglekar

Amol S Joglekar (Expert)
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25 July 2017 ITC:
The service recipient can avail Input Tax credit on the Tax amount that is paid under reverse charge on goods and services. The only condition is that the goods and services are used or will be used for business or furtherance of business.
If the composite dealer falls under reverse charge mechanism then the dealer is ineligible to claim any credit of tax paid. Also , tax in this case will be paid at the normal applicable rates and not at the composition rates.