Dear Sir/Madam,
We request your advise and views on our below queries:
- GST under RCM on overseas freight on import of goods
- GST under RCM on import of service (subscripttion)
The above transactions may attract GST under Reverse Charge Mechanism. We are not aware earlier, recently we have come to know it.
If these transactions attract GST, we need to pay GST for the FY2018-19 and 2019-20, If we pay GST in current year for transactions relevant to FY2018-19 AND 2019-20, can we claim ITC under RCM? and can we raise self-invoice in current date / period for the transactions relevant to previous years, so that we can claim ITC.
Is ‘interest’ OR ‘penalty’ OR ‘interest and penalty’ applicable for GST payments making under RCM? because, there is clause in GST that “Minor breaches of tax regulations or procedural requirements and in particulars, and omission or mistake in documentation which is easily rectifiable and made without fraudulent intent or gross negligence, shall not attract any penalty”.
As I mentioned above, evasion of tax is not our intention, because of lack of knowledge we have not paid GST on this transaction, as We are paying GST under RCM on GTA and Security Charges every month.
As we know, if you pay GST under RCM can be claimed as ITC, we would not get any benefit by avoiding payment of tax under RCM, because, we could have claimed it as ITC, when we are paying GST under RCM.
Please share your views.
Regards,
Chandra Kumar.
Email-ID: accounts @ pacpl.com
CAclubindia
