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Reverse charge Mechanism

24 July 2017

1.Under Reverse charge buyer can purchase from unreg dealer seller from interstate. 2.limit of RS.5000 applicable for both local and interstate? 3.Conditions of availing ITC by buyer He can take ITC from local and interstate? plz clarify.

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2 Replies

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 24 July 2017

1. If the regd person purchases from outside the state from URD, then that URD has to register mandatorily.....

2. Limit of 5000/- is only for intra state purchases from URD, because of above mentioned reason...

3. Intra state purchase from URD-Book RCM take ITC...

Inter state purchase from URD- Book RCM and take ITC...(practically avoid purchase from URD outside the state)

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Pramod.k (Accounts Manager) (82 Points)
Replied 31 October 2017

Dear Sir,

We were booked RCM on purchase from Inter-state URD, but while filing of GSTR2 for Input credit - all IGST paid under RCM on interstate purchases shown automatically as 'INELIGIBLE' section and hence we are not able to claim the said ITC.

Kindly advise.