RCM

Pay from own pocket and take credit

CA Suraj Lakhotia

Admin

22-Mar-23 19:43

Recipient has to pay from his own pocket. However, he can claim ITC of the same

Shiva Teja

Faculty

23-Mar-23 22:06

Under RCM , Recipient will pay only value of supply to supplier. And instead , pay GST amount directly to Government on lieu of payment it to supplier. No ITC can be claimed against such payment, as ITC only available towards outward supply ( RCM GST is inward supply ) . But , Tax paid through RCM gets added in ITC Balance.

Varun Mulay

CA Inter

★ 38K+

24-Mar-23 19:26

Hence , ultimately RCM paid through own pocket . But it doesn't affect any cash outflow as in forward charge.

Varun Mulay

CA Inter

★ 38K+

24-Mar-23 19:27

RCM paid through own pocket is again allowed as ITC right so there is no revenue loss as such.

Shiva Teja

Faculty

28-Mar-23 18:00