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Gst for purchase from unregistered vendors

manish (properitor) (75 Points)

11 January 2018

Can somebody share his experience on GST applicable for interstate purchases from unregestired vendors? We are regestired under GST & as a tour operator our most of the purchases are interstate purchases. Many times the hotels and taxi providers are not providing proper bills as they are not registered under GST.

Looking forward for your insights on GST.

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8 Replies

RAMESH KUMAR SINGLA (PROFESSIONAL) (1777 Points)
Replied 11 January 2018

what i have understood is that you are making purchases from not registered suppliers. since you are registered supplier, you should be paying GST under RCM and taking credit.The taxi fellow or the hotel fellow are not giving GST bill, since they are not registered due to low levels of turnover (less than 20 lakhs). what is bothering you? pl clarify.

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manish (properitor) (75 Points)
Replied 11 January 2018

Dear Ramesh ji,

I am confused about the GST payable under RCM. I am mentioning an example below, kindly explain the things accordingly:

Inter state purchse of taxi service: INR 20000/-

Interstae purchase of hotel: INR 19000/- (Room charges 2600/- per day + food 1200/- day)

total purchases 20000+19000= 39000/-

total billed to client 41000/- + GST @ 5% (2050)= 43050/-

GST INR 2050/- has been paid through GSTR 3B.

Now in GSTR 1 How should I show my purchases and apply the tax on purchases from unregistered vendors. What will be the tax applicable on hotel room? Shall I pay

A- GST 18% on room rent 2600 (i.e. 468/-) + 5%GST on food 1200/- (60)? Final calculation 2600+468+1200+60= 4328/- or

B- GST 18% on Room rent + Food 3800/- (i.e. 684)? Final calculation 3800+684= 4484/-

There is a difference of 156/- in both the calculations. that makes a difference of 780/- in 5 days. Kindly suggest how to proceed.

Manu Kumar Rana (New Updates ) (358 Points)
Replied 11 January 2018

Originally posted by : manish
	Can somebody share his experience on GST applicable for interstate purchases from unregestired vendors? We are regestired under GST & as a tour operator our most of the purchases are interstate purchases. Many times the hotels and taxi providers are not providing proper bills as they are not registered under GST. Looking forward for your insights on GST.

Hi Manish,

I am writting on my doubt Step by step,

Example for Taxi

1.If the vendor of Taxi.cab.bus were charged GST on the bill then you are not eligible to claim ITC under GST regime.it costs for the company. If they are not registered under GST Act then you have to pay GST under RCM without claim ITC.

Example for Hotel,

1. Only for Room , If the supplier of Hotel were charged GST on the bill.then you can claim ITC.If not charged GST on the bill then you have to pay GST under RCM with claim ITC.

2. Only for Food in Hotel ,in the case you should not take ITC whether he can charge GST or you can pay GST under RCM it costs for the Company.

Manu Kumar Rana (New Updates ) (358 Points)
Replied 11 January 2018

Originally posted by : manish
	Dear Ramesh ji, I am confused about the GST payable under RCM. I am mentioning an example below, kindly explain the things accordingly: Inter state purchse of taxi service: INR 20000/- Interstae purchase of hotel: INR 19000/- (Room charges 2600/- per day + food 1200/- day) total purchases 20000+19000= 39000/- total billed to client 41000/- + GST @ 5% (2050)= 43050/- GST INR 2050/- has been paid through GSTR 3B. Now in GSTR 1 How should I show my purchases and apply the tax on purchases from unregistered vendors. What will be the tax applicable on hotel room? Shall I pay A- GST 18% on room rent 2600 (i.e. 468/-) + 5%GST on food 1200/- (60)? Final calculation 2600+468+1200+60= 4328/- or B- GST 18% on Room rent + Food 3800/- (i.e. 684)? Final calculation 3800+684= 4484/- There is a difference of 156/- in both the calculations. that makes a difference of 780/- in 5 days. Kindly suggest how to proceed.

Hi ,

your purchases are not required to show in GST1,you have to upload RCM invoice series mean invoice nnumber of RCM and Payment vouchar number also in Documents issued colum of GST1.

GSTR1 is for sale/ Details of outward supplies of goods or services

manish (properitor) (75 Points)
Replied 11 January 2018

Originally posted by : manu kumar rana
	Originally posted by : manish Dear Ramesh ji, I am confused about the GST payable under RCM. I am mentioning an example below, kindly explain the things accordingly: Inter state purchse of taxi service: INR 20000/- Interstae purchase of hotel: INR 19000/- (Room charges 2600/- per day + food 1200/- day) total purchases 20000+19000= 39000/- total billed to client 41000/- + GST @ 5% (2050)= 43050/- GST INR 2050/- has been paid through GSTR 3B. Now in GSTR 1 How should I show my purchases and apply the tax on purchases from unregistered vendors. What will be the tax applicable on hotel room? Shall I pay A- GST 18% on room rent 2600 (i.e. 468/-) + 5%GST on food 1200/- (60)? Final calculation 2600+468+1200+60= 4328/- or B- GST 18% on Room rent + Food 3800/- (i.e. 684)? Final calculation 3800+684= 4484/- There is a difference of 156/- in both the calculations. that makes a difference of 780/- in 5 days. Kindly suggest how to proceed. Hi , your purchases are not required to show in GST1,you have to upload RCM invoice series mean invoice nnumber of RCM and Payment vouchar number also in Documents issued colum of GST1. GSTR1 is for sale/ Details of outward supplies of goods or services

Hi Manu,

So according to you I do not need to pay any further taxes on purchases from unregistered vendors? I just need to show the invoices under documents issued for purchases from unregistered vendors?