P&L Items GST rate In the GST environment, we all have some confusion about RCM and other Provisions. here is some clarification for GST RCM Provision
P&L Items GST rate
In the GST environment, we all have some confusion about RCM and other Provisions.
here is some clarification for GST RCM Provisions which will help to decide on which p&L ( Profit And Loss Account ) item GST RCM ( Reverse Charge Mechanism) is applicable and is there any input available or not and do we need to create an invoice for that.
Kindly note that as per the council meeting, it was decided that if You purchased an item or took services from an Unregistered dealer ( URD) in a day in excess of Rs 5000/- then RCM will be applicable. Please note per day Rs 5000/- all expenses.
AND this 5000/- Rs limit is not applicable on freight Charges for freight charges limit is Rs 750/- per Lorry Receipt. If any LR is in excess of Rs 750/- then you have to pay GST on that LR under RCM @ 5%.
here is some clarification for GST RCM Provisions which will help to decide on which p&L ( Profit And Loss Account ) item GST RCM ( Reverse Charge Mechanism) is applicable and is there any input available or not and do we need to create an invoice for that.
Kindly note that as per the council meeting, it was decided that if You purchased an item or took services from an Unregistered dealer ( URD) in a day in excess of Rs 5000/- then RCM will be applicable. Please note per day Rs 5000/- all expenses.
AND this 5000/- Rs limit is not applicable on freight Charges for freight charges limit is Rs 750/- per Lorry Receipt. If any LR is in excess of Rs 750/- then you have to pay GST on that LR under RCM @ 5%.
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