Is RCM applicable on purchase from unregistered dealer?

As per Sec 9(4) of CGST Act, if a registered person purchases goods/services from an unregistered dealer (URD) then the registered taxpayer is liable to pay GST on reverse charge basis( only for certain goods/services & registered persons).

Can we claim ITC on RCM in same month?

Can we claim ITC on RCM in same month? Yes, you can claim the Input Tax Credit on RCM in the same month, when you paid the GST under RCM.

How do I claim reverse charge input in Gstr 3B?

To create, save, pay taxes and file Form GSTR-3B return, perform the following steps:

1. Login and Navigate to Form GSTR-3B – Monthly Return page.
2. Enter Details in Section – 3.1 Tax on outward and reverse charge inward supplies.
3. Enter Details in Section – 3.2 Inter-state supplies.
4. Enter ITC Details in Section – 4.

What will be the implication in the case of receipt of supply from unregistered person?

What will be the implications in case of receipt of supply from unregistered persons? Ans. In case of receipt of supply from an unregistered person, the registered person who is receiving goods or services shall be liable to pay tax under reverse charge mechanism.

What if a composition dealer buys from unregistered dealer?

A composition dealer is required to pay tax at a specific rate on total sales. The rate of tax on transactions under reverse charge, purchase from an unregistered dealer and import of services will be at normal rates, i.e. the rates applicable to the supplies.

How do I record a purchase from an unregistered dealer?

Recording a purchase from unregistered dealer

1. Go to Gateway of Tally > Accounting Vouchers > Accounting Vouchers > F9: Purchase.
2. Enter the details as required.
3. Click A: Tax Analysis > F1: Detailed to view the detailed Tax Analysis report that displays the reverse charge amount.

What will be the implications in the case of receipt of supply from unregistered person?

What will be the implications in case of receipt of supply from unregistered person?