RCM on routine expenses

RCM 409 views 4 replies

Vishwanath Bhusari

8 Points Joined August 2017

Do we need to raise self invoice of tax amount 0 RCM and include in Gstr 3 b on following even if amount is less than RS. 5000 per day.
1) Local conveyance paid to staff but booked as expenses
2) Staff refreshments expenses
3) Stationery and general items of low value no bill is given URD
4) Bank charges no GST detailed statement is given by bank but charges deducted as per monthly statement given.
5) Petrol and mobile expenses reimbursed.
6) misc expenses

RCM needs more clarity govt could have simplified or avoided routine expenses under RCM. This has unnecessarily increased work of invoicing and return filling.

Replies (4)

Guest

if less than 5000/- no need to raise the bill since resverve charge not applicable

RAMESH D MODI

Proprietor

4869 Points Joined January 2010

that is why gov. has given 5000/- per day exemption.
and yes RCM concept u/s 9(4) is really a very hardship to businessmen.

Guest

u can use that as set off against gst payable

Vishwanath Bhusari

8 Points Joined August 2017

Thanks for reply. What about Bank charges as earlier expenses were directly expenced out and banks are relunctant to give detailed statement of GST bifurcation. Do we reverse calculate amount and book the expenses in GST quoting bank GSTIN number.
Is RCM invoice required to be raised only when amount exceeds RS 5000 per day and that particular invoice only.
thanks for help