Reverse Charge Mechanism (in case of supplies made by unregistered persons to registered persons) made applicable vide Notification No. 13/2017- Central Tax (Rate) dated 28th June, 2017 deferred to 30th september 2019 vide Notification No. 01/2019 – Central Tax (Rate) dated 29th January 2019 and will apply starting from 1st October 2019, only on specified goods/services and specified persons.
will apply if the below conditions are met:
- There should be a supply of goods or services
- The supply should be in respect of taxable goods/services
- Supply by an unregistered person.
- Supply to a registered person
- Supply in come of intra-state supply as compulsory registration is required for inter-state sales
Please keep a close track of the expenses portion of your P/L account. Some example of expenses which can attract GST under RCM-
- Rent
- Commission payments
- Printing and stationery
- Repairs and Maintenance
- Office Maintenance
- Vehicle maintenance
- Computer maintenance
- Legal Fees
- Consultancy Fees
- Professional Fees
- Audit Fees
- Freight and transportation expenses (GTA)
- Gift expenses
- Business promotion expenses
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