Hello !
Whether registered person needs to issue self invoice in case of RCM supplies received by him from registered person and he is liable to pay tax under RCM ?
Vaishal Ghiya
98240 29025
12 Replies
Pradeep Rajpurohit
(Ca final student)
(14 Points)
Replied 02 August 2017
I am registered person under GST. I am paid rent 7000 to owner for monthly rent . this transaction is Covered under RCM
Kaushik Deepak (KD)
(Officer Accountant)
(1136 Points)
Replied 02 August 2017
Receiver needs to issue Tax invoice if he is paying tax on reverse charge on receiving goods or services from an unregistered supplier.
RAMESH D MODI
(Proprietor)
(4869 Points)
Replied 02 August 2017
yes u will have to issue self invoice for rcm transaction.
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 02 August 2017
| Originally posted by : Vaishal Ghiya | ||
 |
Hello ! Whether registered person needs to issue self invoice in case of RCM supplies received by him from registered person and he is liable to pay tax under RCM ? Vaishal Ghiya 98240 29025 |
 |
RCM is applicable in following 2 cases only:
Case - 1 : If you are receiving the specified services u/s 9(3) , yes you are liable for RCM. You need to raise an invoice and pay RCM even if the supplier is registered.
Case 2 :If you are receiving supplies from unregd person {sec 9(4)}, then also you need to raise invoice and pay RCM.
Vaishal Ghiya
(Propritor)
(29 Points)
Replied 02 August 2017
Sir, I am asking whether registered receipent needs to issue self invoice if he received goods or services from REGISTERED SUPPLIER ?
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 02 August 2017
| Originally posted by : Pradeep Rajpurohit | ||
|
I am registered person under GST. I am paid rent 7000 to owner for monthly rent . this transaction is Covered under RCM | |
If your owner is registered, he will issue a tax invoice to you.
If he is unregd, you have to pay under reverse charge.
RAMESH D MODI
(Proprietor)
(4869 Points)
Replied 02 August 2017
No Not at all. no question of rcm if u purchase from registered persons
RAMESH D MODI
(Proprietor)
(4869 Points)
Replied 02 August 2017
it is only when u purchase from unreg.
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 02 August 2017
But Ramesh ji
If it is notified service then, RCM i s applicable.
Chhatra Singh Dugar
(1464 Points)
Replied 02 August 2017
As far as Mr Ghias Query is concerned if he received Specific services which are covered under RCM. recipient is bound to make GST irrespective of supplier being registered and needs to issue self invoice.
There are certain specified services on which only recipient not supplier is to collect and pay tax under RCM as mentioned in CGST Act
There are certain specified services on which only recipient not supplier is to collect and pay tax under RCM as mentioned in CGST Act
Chhatra Singh Dugar
(1464 Points)
Replied 02 August 2017
As to Mr Rajpurohit query if landlord is registered person he will issue Tax Invoice and charge CGST + SGST if rent paid is intra state and charge IGST if rent billing is inter state
In case landlord is URD, Mr purohit will have to pay tax under RCM and self invoice is raised by him.
In case landlord is URD, Mr purohit will have to pay tax under RCM and self invoice is raised by him.
Sunil Sharma
(CMA & CS)
(584 Points)
Replied 02 August 2017
first of all no GST on income received as an rent from residential property
coming to the other part only commercial rent has to paid on RCM if the owner is not registered ,however slab of 20lac is available to the owner in case if he is below that no need to pay tax just consider that as an Indirect Expense under P&L acount by claiming the section 9(4) provision which states up to INR 5,000 for a day no need for RCM just an consolidated entry will do as a expenses which ultimately have a clubbing of 1.5lacs per month without RCM.
kindly plan properly and take advantage of the provisions.
Hope this would clarify your doubt.
Regards,
Sunil Sharma
coming to the other part only commercial rent has to paid on RCM if the owner is not registered ,however slab of 20lac is available to the owner in case if he is below that no need to pay tax just consider that as an Indirect Expense under P&L acount by claiming the section 9(4) provision which states up to INR 5,000 for a day no need for RCM just an consolidated entry will do as a expenses which ultimately have a clubbing of 1.5lacs per month without RCM.
kindly plan properly and take advantage of the provisions.
Hope this would clarify your doubt.
Regards,
Sunil Sharma
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