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Reverse charge under gst

Rajesh Kumar Pandey (Manager-Accounts) (64 Points)

05 May 2018

Dear Friends,

Is reverse charge under GST suspended till 30.06.2018?

Can we book purchase from unregister as well earlier without booking of Input under Reverse Charge?

Please help.

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7 Replies

Jeeva Thangavelu (Student CA Final ) (609 Points)
Replied 05 May 2018

Yes sir. GST council has defered RCM till 01st July 2018, so you need not pay for purchases from unregistered dealers till then: Except for the notified services and goods where RCM is mandatory. The link for notification specifying such services and goods are;

1. https://www.cbec.gov.in/resources/htdocs-cbec/gst/Notification-for-reverse-charge-CGST.pdf

2. https://www.cbec.gov.in/resources/htdocs-cbec/gst/Notification13-CGST.pdf

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funnyjokes (funnyjokes) (26 Points)
Replied 05 May 2018

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RAHUL (Accountant) (46 Points)
Replied 05 May 2018

Dear Sir,

Recovery Agent is under RCM in GST. I am registered under GST-Regular dealer. I work for Bajaj Finance as recovery agent. I am confused about GSTR 3B & GSTR 1 filing. What details i have to provide in GSTR 3B & 1.

Please suggest solution.

Jeeva Thangavelu (Student CA Final ) (609 Points)
Replied 07 May 2018

Sir,

First of all you neednt have registered under GST as Recovery agents service is covered under RCM.

1. Whether your acting as recovery agent alone (for banks & NBFC's like Bajaj Finance) (or)

2. Are you engaged in providing other services also (Eg. Commission agent for Other than banking and finance sector).?

If your in case 1, then you may surrender your GST registration as it not required.

If its case 2, then provide sales details of other than recovery agent in taxable supply and pay tax for the same and fill receipts as recovery agent in exempt supply if you have not collected GST for the same in the Invoice. Whereas if you have collected GST along with invoice then include that also in sales taxable in GSTR-3B and file the return. As you are registered ,its advisible that you collect GST for recovery commission invoices also and remit the same.

In GSTR-1 you have to upload the invoice details raised during the current month/quarter. The total of taxable value & tax amount of the invoice uploaded has to match with the GSTR-3B for the corresponding month or quarter.

Hope you have the query cleared.

RAHUL (Accountant) (46 Points)
Replied 07 May 2018

Dear Sir, Firstly, thank you for your reply. I have only reconery agent busuness. NBFC (Bajaj) is insisting for GST No. So i cannot surrender the same. To continue business, I have to be GST registered. How to report transaction in this case ?

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Jeeva Thangavelu (Student CA Final ) (609 Points)
Replied 07 May 2018

Okay sir. Since the NBFC is asking for your GSTIN you may hold it. But your are not required to collect and remit GST as the servive is covered under RCM. So raise a invoice stating Bill of Supply without collecting tax. You may mention the reason under the declaration part as Service covered under RCM u/s 9(3) of CGST Act 2017 hence not liable to collect tax. And as i said earlier report the same as exempt supply in GSTR3B and upload invoices in GSTR1 as exempt supplies.