Dear all,
Kiindly share information and your experience of GST for purchases from Ladakh. Ladakh is in Jammu & kashmir and the businesses have several relief previously. But the situation is not clear after GST.
My query is specifically for tourism sector. Purchase of hotel rooms and taxi services have to be made from Ladakh for tours. The taxi drivers are usually unregistered under GST. The hotels also communicate that they have a tax relief. For our purchases made from ladakh region after July 2017 after implementation of GST there are many confusions.
1- How shall we show our purchases?
A- Mostly the taxi drivers are unregistered with GST and they do not provide a bill. So in this condition Do we need to generate and invoice of purchase from unregistered persons and pay tax on behalf of them? Shall we show it under the reverse charge mechanism(RCM) ?
B- Some of the hotels also do not provide invoices of purchase and they are charging 3000+ per day. Do we need to show this purchase also inder purchase from unregistered persons and pay 18% tax on the room charges?
In both A & B shall we pay the taxes on behalf of both taxi providers and hotels who do not provide us their GST numbers and consider the purchase as PURCHASE FROM UNREGISTERED PERSONS?
2- When we pay taxes on our sale @ 5% on tour packages for ladakh region where we have used the above mentioned services of hotels and taxi purchased from unregistered person, Shall we mention the taxes paid in our purchases and claim them back under reverse charge mechanism (RCM) ?
Kindly share your understanding, insights & experiences so that we can work smoothly with GSTR.
Best regards
CAclubindia
