What is reserve charge in gst law. Pls explain with some examples
11 Replies
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 24 June 2017
Sir, when a registered persons purchase some notified goods or services they have to pay GST instead of the supplier.
The council has notifies some services for which receipient is liable to pay tax.
And also,, if a regd person pur inward supplies from unregd dealer, he has to pay tax under RCM.
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 24 June 2017
A is registered under GST. He purchases goods from a local vendor (B) who is unregistered in GST.In this case when B sells goods, he is cannot charge and collect GST because he is unregd. So A will have to pay GST to the govt.
pradeep
(partner)
(37 Points)
Replied 24 June 2017
But here seller (URD) should be selling the goods for the furtherance of the business, if an individual person is selling his personal jeweller to a RD, no charge under RCM
siddharath
(1)
(115 Points)
Replied 24 June 2017
Suppose I purchase stationery of 1000 from an unregistered person. Can I show it as expenses in my books of account.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 24 June 2017
Yes, You can book it your expenses. But, You ll be pay GST tax of RCM.
Ex: If you purchase stationary from URD Rs. 1000. If the GST is 18% you ll pay 180 tax for the product... After, You can take ITC in return...
Ex: If you purchase stationary from URD Rs. 1000. If the GST is 18% you ll pay 180 tax for the product... After, You can take ITC in return...
siddharath
(1)
(115 Points)
Replied 24 June 2017
firm exp. (ex.- hammali, tea & refreshment etc. ) ke RCM create required he kya. if not create RCM so what is effect of exp.
siddharath
(1)
(115 Points)
Replied 24 June 2017
Dear raja how can I get ITC of 180 as I have purchased from unregistered person. Pls tell the procedure of getting ITC in this case pls
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 24 June 2017
| Originally posted by : siddharath | ||
 |
Dear raja how can I get ITC of 180 as I have purchased from unregistered person. Pls tell the procedure of getting ITC in this case pls |  |
The person who is paying GST under RCM can take ITC of the tax paid by him.
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 24 June 2017
| Originally posted by : pradeep | ||
|
But here seller (URD) should be selling the goods for the furtherance of the business, if an individual person is selling his personal jeweller to a RD, no charge under RCM | |
Even that Individual is unregd. Purchaser has to pay in reverse charge.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 24 June 2017
| Originally posted by : siddharath | ||
|
Dear raja how can I get ITC of 180 as I have purchased from unregistered person. Pls tell the procedure of getting ITC in this case pls | |
Yes, you can take ITC on your inputs tax and RCM paid Tax.
Purchase from Registered dealer you paid the tax and it mentioned the Invoice. Purchase from unregistered dealer you paid the Tax under RCM. Then its all the inputs you can get ITC on your purchases....
I think you satisfied.....
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