RCM under GST
chitresh moudgil (32 Points)
05 July 2017
Can you explain how RCM work in GST in case of purchase made from Unregistered dealer?
chitresh moudgil (32 Points)
05 July 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(170821 Points)
Replied 05 July 2017
If you are registered dealer and purchased goods from unregistered dealers, than first you have to pay the tax on such purchases under reverse charge mechanism and than input can be claimed for the same.
RAJA P M
("Do the Right Thing...!!!")
(128010 Points)
Replied 05 July 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(170821 Points)
Replied 05 July 2017
No............ because composition dealer is a registered dealer under GST....
Only problem is....... because he gives bill of supply, ITC (chain) is broken.... Or..... No ITC available
chitresh moudgil
(32 Points)
Replied 05 July 2017
RAJA P M
("Do the Right Thing...!!!")
(128010 Points)
Replied 05 July 2017
RAJA P M
("Do the Right Thing...!!!")
(128010 Points)
Replied 05 July 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(170821 Points)
Replied 05 July 2017
@ Chitresh............. Consumer/ purchaser evaluates marketibility before going in for deal.......
He is not bound by Seller but by economics........
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(170821 Points)
Replied 05 July 2017
@ Raja........... When composition dealer sell/supply...... he issues bill of supply and pay (1/2/5)% to government. No Tax Invoice !!
RD is not liable to pay anything under RCM (like that in case of URD) but at the same time he is deprived of any ITC (not direcly paid, but indirectly priced). When he sells, he has to charge full GST and pay it to government (GSTR - 1... Full) but (GSRT-2...'0').
chitresh moudgil
(32 Points)
Replied 05 July 2017
chitresh moudgil
(32 Points)
Replied 05 July 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(170821 Points)
Replied 05 July 2017
Yes.......... In a way you are correct...........
But there are situations in retail trade....... where URD trading with URDs without any tax liability!!! (mostly daily use items)
And composition dealers trading btw themselves at just 1% while the supply may be listed at 18/28% !!!
So, let the clear picture come out!!
RAJA P M
("Do the Right Thing...!!!")
(128010 Points)
Replied 05 July 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(170821 Points)
Replied 05 July 2017
@ Raja: You are right......... it will be an added cost as explained by Chitresh Moudgil.......
RAJA P M
("Do the Right Thing...!!!")
(128010 Points)
Replied 05 July 2017
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