The Provisions of Reverse Charge Mechanism under GST are
real pain in neck for both Buyer and Seller (URD). On the one hand URD Sellers
have lost many of their permanent customers, other hand Buyers facing
accounting and record keeping issue for minor purchases/expenses.
Just to give some relief GoI give relaxation vide
notification no. 8/2017 dated 28.06.2017.
“exempts intra-State supplies of goods or services or both
received by a registered person from any supplier, who is not registered, from
the whole of the central tax leviable subject to the aggregate value of such
supplies of goods or service or both do not exceeds five thousand rupees in a
day”
NB: This notification is only for CGST, if you buy goods
worth Rs. 5000/-, taxable at 18%. You will get exemption of 9% only. To avail
exemption of 9% SGST, ensure state govt has also issued similar notification.
God knows, why GST Council is not taking the responsibility to get the
notification issued by state govts. One Nation One Tax – Only an Illusion
unless one single authority takes the responsibility.
A,
RD at Nehru Place buy some stationery from B, URD at Sadar Bazar for Rs. 4800/-
on 21.07.2017, makes the payment on 24.07.2017 and book in his account on
25.07.2017.
What
date to consider to check exemption limit?
It
should be 21.07.2017, Date of receiving Goods & Services. So ensure to book
petty expense on the same day. Would be tough where someone from Admin handle
all expense through Imprest account. Have to do accounting at micro level.
Earlier many companies used to get one bill for the month for petty expenses,
but now they have to split it on daily basis to avail exemption.
Also
if in same case, A is from Noida, then, No Exemption. It is only for
Intra-State.
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