RAJESH ACCOUNTANT, Goods and Services Tax - GST

[rajesh subramanian]

DEAR SIR

WE ARE PVT LTD COMPANY, WE ARE PAYING 11500 / PER MONTH AS SECURITY CHARGES ( MONTHLY SALARY FOR NIGHT SHIFT ) TO AN INDIVIDUAL . THIS WILL COVER UNDER RCM ? IF WE ARE PAYING GST UNDER RCM , SHL WE TAKE CREDIT ?

Posts / Replies

[KASTURI SETHI]

See Serial No.14 of Notification No.29/18-CT(Rate) dated 31.12.18 effective from 1.1.19.

ITC can be taken after payment of tax in cash.

[Ganeshan Kalyani]

Input Tax Credit is allowed in the same month of payment of tax under reverse charge. Thanks

[Spudarjunan S]

Dear Sir,

You are liable to pay RCM under GST for the Security charges received by you from an Individual w.e.f 01st January 2019 in lieu of notification no.29/2018 C.T(R) dated 31st December 2018.

In case of RCM liability you need to make the payment through cash and can avail the credit of the same in the same return in which the payment towards the liability has been made.

The eligibility of the ITC is to examined under section 16, 17(1) & 17(2) of CGST Act. i.e. what is your outward supply taxable/exempted, whether used for business purpose or not and so on.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of the experts.