GST PROVISIONS :
ITC on goods / services on which composition levy is paid is blocked - Sec 17(5)(e)
Registered recipient receiving RCM supplies from unregistered supplier has to issue invoice to such supplier and a payment voucher at the time of payment
Composite dealer have to pay tax on Turnover in state which includes taxable supplies and exempt supplies
Composite dealers are required to issue Bill of supply instead of TAX invoice
Composite dealer is considered as a Registered person under GST
Queries :
1) Whether composite dealer will issue bill of supply even for outward RCM supplies ?
2) If answer to (1) is yes then will he mention in that bill that tax is payable under RCM ?
3) Whether outward RCM supply made by composite dealer is counted in turnover in state while calculation of his tax liability ?
4) If answer to (3) is yes then this would mean that both recipient and composite dealer pay tax on RCM. Is this an actual scenario ?
5) Will recipient of RCM supply from composite dealer issue tax invoice even if composite dealer has issued bill of supply ?
6) If answer to (5) is no then what documentary proof will recipient show to pay his RCM liability to government & how will he take ITC of RCM paid by
him in he doesn't issue tax invoice to composite dealer?
Please share your thoughts 🙏
CAclubindia
