GST on RCM - A Simple View

 GST on RCM -  A Simple View


  • ·   If you have RCM liability even, then your threshold limit is less than eligible turnover you must register under gst as per Sec 24 of CGST Act 2017.
  • ·       RCM covered under CGST Act 2017 – under sec 9(3), 9(4) & 9(5)
  • ·  In case of a project developer or construction of apartment by the developer, 80% of inputs and input services [other than capital goods, TDR/JDA, FSI, long-term lease (premium) shall be purchased from registered persons. On shortfall of purchases from 80% tax shall be paid by the builder @18% on RCM basis. However, Tax on cement purchased from unregistered person shall be paid @28% under RCM, and on capital goods under RCM at applicable rates in terms of Section 9(4) the CGST Act,2017
  • ·  Renting of motor vehicle There are only two rates applicable on the service of renting of vehicles, 5% with limited ITC and 12% with full ITC.

·       Goods –

ü cashew nuts not shelled or peeled,

ü Beedi wrapper leaves,

ü tobacco leaves,

ü Mentha piperita,

ü silk yarn,

ü raw cotton,

ü supply of lottery,

ü seized vehicle sold by government,

·       Services –

ü GTA,

ü Individual advocate,

ü Arbitral Tribunal,

ü sponsorship service,

ü services supplied by government,

ü renting of residential or commercial to registered person,

ü Transfer of Development right or floor space index,

ü long term lease of land (over 30 years),

ü Payment to Company director,

ü Insurance agent service,

ü recovery agent service,

ü copy right service to composer, photographer or artist,

ü members of overseeing committee constituted by RBI,

ü Direct selling agents for banking or NBFC sector,

ü Business facilitator,

ü An agent of business correspondent,  

ü renting of motor vehicle designed to carry passengers to body corporate,

ü service of lending securities,

ü services from Non-taxable territory to taxable territory,

ü Security services,

ü Unregistered supply through Electronic Commerce Operators

Comments

Post a Comment

Popular posts from this blog

Understanding E-commerce Operators under GST

Image
Understanding E-commerce Operators under GST In the rapidly evolving world of online commerce, electronic marketplaces have become instrumental in facilitating seamless transactions between buyers and sellers. With the advent of E-commerce, governments worldwide have been adapting their tax systems to keep pace with the digital economy. In India, the GST was introduced on July 1, 2017, and it brought about significant changes for E-commerce operators.  What is an E-commerce Operator? An E-commerce operator refers to any person or entity that owns, operates, or manages a digital platform that facilitates the supply of goods or services between suppliers and customers. Popular E-commerce platforms like MDND, Amazon, Flipkart, and eBay are classic examples of E-commerce operators. These operators act as intermediaries, bringing sellers and buyers together and facilitating transactions. GST Registration of E-commerce Operator E-commerce operators are required to register under GST, reg...
Read more

GST Reconciliation

Image
GST Reconciliation GST reconciliation stands as a pivotal task for businesses across India, regardless of their scale.  This critical process involves cross-checking GST data extracted from various sources like invoices, purchase orders, and bank statements to guarantee its precision and entirety.  The intricacies of this task often make it time-consuming, particularly for enterprises dealing with high transaction volumes. However, despite its complexities, GST reconciliation remains indispensable. Compliance with GST regulations hinges on this process, crucial for evading substantial penalties.  Moreover, it enables businesses to maintain an accurate financial trail, identifying potential errors or discrepancies along the way. A Proper Explanation of GST Reconciliation GST reconciliation process serves to pinpoint errors or omissions, allowing for timely rectification. The primary objective is to ensure consistency between your recorded invoices and purchases and the dat...
Read more

Credit notes and debit notes under GST

Image
Credit notes and debit notes under GST Section 34 of the CGST Act plays a crucial role in regulating credit and debit notes in the context of goods and services. Section 34: Credit and debit note Section 34(1) of the CGST Act pertains to credit and debit notes. The extract of the section is provided below: “Where one or more tax invoices have been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient one or more credit notes for supplies made in a financial year containing such particulars as may be prescribed.” According to the section 34, a supplier has the option to issue a credit note with GST (referred to as “GST credit note”...
Read more