Reverse charge

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2018 Hi Guys,
We doing our business from a rented premises(commercial) the landlord is unregistered person in GST.
rent is 25000/- per month
Whether there is liability to deposit GST in reverse charge.
If yes then what is the benefit of exemption of RS 5000/- per day in case purchase from unregistered person no reverse charge is applicable.
please elaborate.
If answer is Yes then please suggest any way to avoid the same.

RAJA P M

RAJA P M (Expert)
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25 June 2018 As per sec 9(4) of CGST act supplies received from URD then RCM applicable for inward supply. Also CBEC* give some relaxation. For that in a Day the URD related inwards less than 5000 then no need to pay Tax under RCM basis.
In case it's exceeding above 5000 then RCM applicable all the amount from rupee One (1).
Ex:
If less than 5000 no need to pay RCM Tax.
If it's above 5000 like 5050 then we will pay Tax under RCM basis for the 5050...

Note :
The Sec 9(4) of CGST act related RCM is suspended to 30th June 2018. No need to pay Tax under RCM basis from 13th October to 30th June 2018...

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2018 sir ji.... i know that
but what will happen after 30th june...today is 26/06/2018 there is no time left
assume that rent is paid in july and reverse charge become applicable
now please tell me whether tax has to be paid on rent or not.
In my opinion Reverse charge is not applicable.....because rent is paid for whole of the month and not for a single day. if we divide 25000 by 30 then the resultant figure will come below 5000????

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