Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Reverse Charge in case of Scrap Traders

Aman Agrawal (Student) (36 Points)

18 February 2021

I am scrap traders dealing in scrap items like plastic,papers,iron etc.. I daily purchase goods from Unregistered Dealers and my aggregate turnover perday touches 10k to 15k(adding all the dealers) will I have to make invoices ? Right now I am not showing purchases and only I show sales in gstr3b..is it mandatory? Should I have to make 1 invoice at the end of the day for all the purchases..

Please answer me

Reply
Follow
Share

6 Replies

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (5138 Points)
Replied 18 February 2021

Assuming that you are aware of RCM mechanism and sections regarding RCM I am discussing only disclosures to be made in GSTR 1 and GSTR 3B

First GSTR 3B

you have declare your liability first in 3.1(d) row. The details to be declared in that row are value of supplies received from supplier of goods or services and tax amount applicable to the supplies.

After declaring liability, in Table 4(A)(3) you have to claim input related to that RCM liability.All the liability you have declared in Table 3 you have to discharge the same through cash ledger at the time of filing of GSTR 3B.

Disclosures in GSTR 1

At the time of filing GSTR 1 there will be only disclosures effect in document issued table in GSTR 1.

As per GST rules when a payment is made to RCM transaction we need to raise a payment voucher and an Invoice relating to that supply and we have to disclose the starting number, ending number, no.of cancelled docs in related rows in Documents issued table.

Upgrade to CAclubindia Pro. Subscribe Now!

Aman Agrawal (Student) (36 Points)
Replied 18 February 2021

No i didn't asked you the treatment in gst portal.. I m just asking is it mandatory to show purchase and raise bills.. should I have to make one single consolidated bill of all the purchases from URD?

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (5138 Points)
Replied 18 February 2021

Raising a separate invoice for every single purchase is redundant and often spammy. Consolidated invoicing combines all these individual purchases into a single invoice that you can send

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 18 February 2021

There is no RCM on purchase from unregistered dealers now except in the case of Real Estate Business. Therefore no need of self invoice generation

Aman Agrawal (Student) (36 Points)
Replied 18 February 2021

So basically I don't need to make consolidated invoice for all purchases from Unregistered dealers(kabadiwala).. I just need to raise invoice during sales... Right.?