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Purchase from unregistered dealer

Hemant Kumar (Student CA Final) (74 Points)

13 August 2017

If A person purchase goods from an unregistered dealer amounting less than 5000 in whole day. which type of bill is issued by unregistered dealer to that person I. e. Registered dealer Cash memo or other type of bill

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29 Replies

Kunal Pansari (Accountant) (1037 Points)
Replied 13 August 2017

Bill of Supply I guess

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Srinivasan Chokkanathan (199 Points)
Replied 13 August 2017

As he is not a registered dealer, he may not issue any invoice. You have to raise self invoice. Further Rs.5000 limit is not for every unregistered dealer. That is one day limit for one or all such transactions made on the day.

1 Like

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 13 August 2017

RCM- is an opportunity to optimise the taxes once payable.

Invoice , Chacha slip, no bill all from unregistered is ok. The Regd assessee will raise self invoice based of the following:

1. Bifurcate into exempt supplies and taxable supplies. If taxable supplies exceed Rs. 5000/- per regsitration under GST then..

2. Bifurcate the taxable supplies rate wise.

3. Identify which are eligible for ITC

4. Raise 1 invoice per month with applicable GST for eligible and another one for ITC not eligile.

5. Pay and avail credit of eligible ITC on RCM.

1 Like

Sumit Shah (Chartered Accountant) (50 Points)
Replied 13 August 2017

Is rcm applicable to purchase transactions from farmers by middleman. If yes then the same approach is prescribed.

CA Divyesh Sodha (Partner) (271 Points)
Replied 13 August 2017

Sir I suppose limit of 5000 is applicable per day for all taxable supply received from unregistered person. Further invoice needs to be issued for all individual supply received under RCM?

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Hemant Kumar (Student CA Final) (74 Points)
Replied 13 August 2017

What I do if supply from all unregistered dealer is less than 5000

Hemant Kumar (Student CA Final) (74 Points)
Replied 13 August 2017

I mean which type of invoice

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 14 August 2017

CA Divyesh Sodha.,
If your all URD purchase less than Rs. 5k then no need self invoices. You can account it in expenditure account as usual..

2 Like

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 14 August 2017

@ Hemant Kumar.,
If you are registered under GST as regular dealer then you can give only tax invoice to anybody if they are URD or Composition dealer or Regular dealer......

If you are registered composition dealer then you ll be give only Bill of Supply to anybody if they are URD or Registered regular dealer or composition dealer......

1 Like

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 14 August 2017

@ Sumit.,
Your purchase items is taxable then you ll be pay Tax under RCM. If the items is exempted then you don't want pay tax under RCM basis.....

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CA Divyesh Sodha (Partner) (271 Points)
Replied 14 August 2017

Raja P M ji... I know that but i am asking what Mdhukarsir said.... Bifurcate into exempt supplies and taxable supplies. If taxable supplies exceed Rs. 5000/- per regsitration under GST then.? Per registration means per supplier? It is not so as per notification. It is total per day. If total taxable supply from unregistered person exceeds 5000 then RCM will be applicable and you have to issue invoice for all such supplier. That is what i understand. Correct me if I am wrong

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 14 August 2017

@ Divyesh.,
We sell our goods / services then ll give invoices.
But, Why/How we give invoices to our supplier....?

We don't give invoices to supplier. We prepare the bill/voucher as invoice for our use.

We just understanding self invoice.... if we enter the URD purchase in GSTR then it ll be preparing the S.No.(1,2,3....)
In case we prepare self invoice then we can enter S.No ourselves... That's all.....

Hemant Kumar (Student CA Final) (74 Points)
Replied 14 August 2017

@ CA Divyesh sodha sir
If my all purchase from all unregistered dealer is not exceed rs. 5000 in a day then this purchase should consider as purchase or expenses and if consider as purchase then it is required to enter it in any return.

Randheer Kumar (Accounts Manager) (58 Points)
Replied 14 August 2017

@ Hemant no there is no need to mention purchase from URD if daily limit is not over ₹ 5,000/- also entry of that will be same if u have made expenses then under expenses if u have made a purchase then in Purchase...