One of my client is rendering cab service, till September he paid taxes, but first October onwards he is not paying, his services are declaring under RCM basis.
how to declare his service in gstr 3B and Gstr 1??
pls clarify
8 Replies
CA Dhruva Kalamanji
(Chartered Accountant )
(1996 Points)
Replied 21 October 2019
Other outwards supply nill rate head to declare the turnover
Hardik
(Professional)
(918 Points)
Replied 21 October 2019
Firstly, Cab services are not under reverse charge. There are handful of notified services which are covered under reverse charge and cab service is not one of them..
If you're talking about cab services provided through ECO like Ola, Uber etc., then the compliance burden is on ECO and not on cab service provider..
If you're talking about cab services provided through ECO like Ola, Uber etc., then the compliance burden is on ECO and not on cab service provider..
Adarsha Sharma Hosabale
(73 Points)
Replied 21 October 2019
From October onwards Individuals Cab services are under RCM
CA Haritha Komma
(Chartered Accountant)
(1147 Points)
Replied 21 October 2019
Strict interpretation, RCM is applicable only when the supplier is 'Any person other than a body corporate, paying central tax at the rate of 2.5% on renting of motor vehicles with input tax credit only of input service in the same line of business'
Hence, from above it appears that the RCM is applicable only when the supplier (other than body corporate) is paying GST @ 5% which happens only when the supplier is registered. Hence, if the supplier is unregistered, it appears that RCM is not applicable..
Hardik
(Professional)
(918 Points)
Replied 21 October 2019
Okay Adarsha, I was not updated regarding inclusion of cab services under RCM, and I just now I read that notification..
Replying to your query assuming that RCM is applicable in your client's case. You can show the taxes in following manner..
GSTR 3B - Show your outward supply of services in Table 3.1 (c) i.e. Other outward supplies (nil rated, exempted)
GSTR 1 - for B2B Supply, upload the invoice amount as usual but tick the RCM box..
Hope this helps..
Replying to your query assuming that RCM is applicable in your client's case. You can show the taxes in following manner..
GSTR 3B - Show your outward supply of services in Table 3.1 (c) i.e. Other outward supplies (nil rated, exempted)
GSTR 1 - for B2B Supply, upload the invoice amount as usual but tick the RCM box..
Hope this helps..
Adarsha Sharma Hosabale
(73 Points)
Replied 21 October 2019
@ Hardik, Sir in GSTR-1, if we select that RCM box we have to fill tax amount in below coloumns,
Hardik
(Professional)
(918 Points)
Replied 21 October 2019
Yes, you need to fill tax amount, rate etc. in respective column but when you check the RCM box, so the tax liability passes on to the recipient and you're not liable to pay tax.. This is how the recipient's e-liability register gets updated in case of B2B Supplies
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 21 October 2019
I Need to Add to CA Haritha reply
The Recepient must be Body Corporate.
The Recepient must be Body Corporate.
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