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RCM on Interstate Supply

Suresh yadav (Student CA IPC / IPCC) (60 Points)

14 September 2017

I am registered dealer in Maharashtra and getting service from MP from a unregistered dealer. Should I charge IGST under RCM machanism

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4 Replies

RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 14 September 2017

You ll be charge RCM as IGST.
But, How your service provider give service from MP...? He is URD in MP.
MP states URD can't make services / goods to other States.... n

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Suresh yadav (Student CA IPC / IPCC) (60 Points)
Replied 14 September 2017

He provided me broker service by referring client to me in Mumbai. Now he is asking for 2Lakh brokerage. How to deal in this case as per GST law

RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 14 September 2017

No.... No way for this service.

Because, URD can't serve inter state. And Also the Commission and Brokerage services registration is mandatory under GST.

So, This transaction is disallowed for anyway...

You refered to the urd for Take registration...

Poltu Ghosh (Job) (1865 Points)
Replied 14 September 2017

You are legally restricted in accepting bills from such unregistered persons in case of inter state supply. Ask the Broker to take registration. You cannot pay RCM as IGST