RCM - Time Of Supply under GST With Pr Delhi
RCM - Time Of Supply under GST With Practical Point
Generally, the supplier of goods or services is liable to pay GST. However, in specified cases like imports and other notified supplies, the liability may be cast on the recipient under the reverse charge mechanism. Reverse charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply.
TWO TYPE OF REVERSE CHARGE SCENARIOS IN GST LAW.
Ø First is dependent on the nature of supply and/or nature of supplier. This scenario is covered by section 9 (3) of the CGST/ SGST (UTGST) Act and section 5 (3) of the IGST Act.
Ø Second scenario is covered by section 9 (4) of the CGST/SGST (UTGST) Act and section 5 of the IGST Act where taxable supplies by any unregistered person to a registered person is covered.
Time of Supply under Reverse Charge Mechanism
In case of Goods
As per Section 12(3) of the CGST Act, in case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earliest of the following dates, namely: —
(a) the date of the receipt of goods; or
(b) the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or
(c) the date immediately following thirty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier:
Provided that where it is not possible to determine the time of supply under clause (a) or clause (b) or clause (c), the time of supply shall be the date of entry in the books of account of the recipient of supply.
In case of Services
· As per Section 13(3) of the CGST Act, in case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earlier of the following dates, namely: –
(a) the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or
(b) the date immediately following sixty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier:
Provided that where it is not possible to determine the time of supply under clause (a) or clause (b), the time of supply shall be the date of entry in the books of account of the recipient of supply
· in case of supply by associated enterprises, where the supplier of service is located outside India,
The time of supply shall be the date of entry in the books of account of the recipient of supply or the date of payment, whichever is earlier.
Some practical point need to be considered in RCM
• All recipients required to pay tax on goods or services or both under RCM are mandatorily required to obtain GST Registration and the threshold of ` 40 Lakhs/ 20 Lakhs is not applicable to them. However, registration need not be obtained by the recipient if such recipient supplies only services covered under Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 .
• Where any registered person is supplying specific goods or services or both notified by Government under RCM then invoice wise details of such supplies shall be reflected in Table 4B of FORM GSTR-1.
• A supplier shall not be eligible to claim input tax credit of GST paid on goods or services used to make supplies on which recipient is liable to pay tax.
• GST payable under RCM shall be paid by the recipient by due date for furnishing FORM GSTR-3B.
• The payment of GST under reverse charge shall be made by the recipient by debit of electronic cash ledger only.
• Tax paid on RCM basis shall be available for input tax credit only if such goods and/or services are used, or will be used, in the course or furtherance of business.
• The recipient shall issue a self-invoice for the goods or services received from unregistered supplier.
• The recipient of supplies under RCM from an unregistered supplier can avail input tax credit on basis of self-invoice made by him.
• The recipient shall issue a payment voucher at the time of making payment for the goods or services received from a supplier of goods or services liable to tax under RCM.
• The condition of payment of value of service within 180 days of the date of supplier invoice is not applicable on supplies liable to tax under RCM. Hence, there would be no interest liability on account of the same.
For further clarification and professional assistance, feel free to connect SRTConsultancy & Co at [email protected]
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वेब सीरीज़ लव तो हुआ है यारो मे ट्विस्ट लायेगी कपिश्प्रीत कौर। वेब सीरीज मे चिराग की एक्स गर्लफ्रेंड बन कर सामने आयेगी
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जल्द ही रिलीज हो रही ये वेब सीरीज़ ओर ये नए किरदार लोगो के दिलो मे कितना घर करते है ये देखने के लिये हर कोई exited है
Will reopeningof educational institutions will lead to a massive surge in Covid-19 cases?
Opening of schools in this strenuous period from which we are passing would be the worst by the government. It would be like playing with the fire and harming the future of our nation. Unquestionably reopening of educational institutions will surely lead to a enormous increase in the Covid-19 cases. Even as, now the students will be very eager to interact with their fellow mates because of the long duration of the unexpected vacations. In this situation, implementation of strict rules among the students in huge numbers inside the campus would be a tough task for the school administration. Moreover, whether one student sequels to Covid-19 positive ,whole school/college's students along with the teaching staff will be encouraged as this disease is contagious before symptoms appear and also spreads very quickly within a group of people. At home ,we can take several precautions but how we'll be ensured that the same would be carried out there. There would be fear during lunch breaks , also inside the classroom s and school buses. As a symbol of significant suggestion from myside, the current academic session should be conducted through the e-Learning plateform.
~Harkirat Singh Shankar
Student of standard IX
Sacred heart convent school ,
Sarabha Nagar Ludhiana.