Clarification regarding Reverse Charge GST
Category : GST
As per the rules, any registered supplier purchasing goods or services from an unregistered supplier has to pay Reverse Charge GST
We have never bothered to look into the expenses side of the profit and loss account with respect to earlier taxes.
The time has come to make sure, all your payments above Rs. 5000 per day, are paid with GST.
In other words, if you are dealing with unregistered suppliers and making payments above Rs. 5000, you have to pay GST under reverse charge mechanism (RCM).
Exceptions of RCM
Salary and wages
Printing and stationery
Repairs and Maintenance
Frieght and transportation expenses
Business promotion expenses