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Outward supplies with GST liability on RCM basis

Anirudh (Student) (299 Points)

23 May 2018

Such outward supplies are considered as exempt supplies for the allocation of ITC as per Rule 42 & 43. Whether these supplies would be treated as taxable outward supplies for determining registration requirement in a state/UT?

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A.K.Banik (Tax Consultant) (1596 Points)
Replied 23 May 2018

The law says that “aggregate turnover” means the aggregate value of all taxable supplies, excluding the value of inward supplies on which tax is payable by a person on reverse charge basis, exempt supplies, exports of goods or services or both and inter-state supplies of persons having the same Permanent Account Number, to be computed on an all-India basis but excludes Central tax, State tax, Union territory tax, Integrated tax and cess.

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Anirudh (Student) (299 Points)
Replied 23 May 2018

Law states that every person is required to obtain registration in a state or UT from where he makes taxable supply of goods or services if his aggregate turnover exceeds rs. 20 lakhs. My question is whether taxable supplies here include outward supplies with RCM applicability.

A.K.Banik (Tax Consultant) (1596 Points)
Replied 23 May 2018

“Turnover”: Includes:  supplies in Goods or Services or in both effected within state or outside the state;  Stock Transfer, Barter, Gift in kind, Samples, Exchange of services, etc.;  Exempted supplies, supplies made in the course of export; and Excludes:  taxes leviable under the GST enactments

SO YOUR QUESTION IS NOT WITHIN THE DEFINATION OF TURNOVER.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 23 May 2018

If his outward supply is under 9(3) No need take registration irrespect of turnover
If his outward supply covers under 9(4) , & exceeds 20 lac , registration is mandatory

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