Goods and Services Tax – GST – By: – CASanjay Kumawat – Dated:- 24-10-2017 – [With reference to deferment of RCM provision given under section 9(4) of CGST Act and section 5(4) of IGST Act] 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. There are two type of reverse charge scenarios provided in the GST law: First is dependent on the nature of supply and/or nature of supplier, like GTA,
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case of supply of goods (Section 12 of the CGST Act, 2017), time of supply is earliest of: – date of receipt of goods; or date of payment as per books of account or date of debit in bank account, whichever is earlier; or the date immediately following thirty days from the date of issue of invoice or similar other document. In case of supply of services (Section 13 of the CGST Act, 2017), time of supply is earliest of: – date of payment as per books of account or date of debit in bank account, whichever is earlier; or the date immediately following sixty days from the date of issue of invoice or similar other document. Deferment of applicability of Section 9(4) of the CGST Act, 2017 and Section 5(4) of the IGST Act, 2017 The Central Governm
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of issue of notification. In view of the above, whether commercial invoice issued by the unregistered supplier upto 12.10.2017 would be subject to levy of GST under RCM? Answer to this question can be derived from the time of supply provisions. One should not blindly say that yes, GST is payable under RCM . To understand this, let s take an example: M/s XYZ C&F (Recipient) has taken a premise on lease from an unregistered supplier. Rent payable amount is ₹ 30,000/- Per Month and due date is 4th of the first week. Recipient has also taken AMC of the premise for ₹ 7,000/- Per Month and due date is last day of the month. For the month of September, 2017, rent is due on 4th September, 2017 and AMC charges due on 30th September,
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