RCM APPICABILITY FOR SERVICES PROVIDER FOR OVERSEA VENDOR

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..... RCM APPICABILITY FOR SERVICES PROVIDER FOR OVERSEA VENDOR
Query (Issue) Started By: - RAJIV PATEL Dated:- 20-7-2017 Last Reply Date:- 25-7-2017 Goods and Services Tax - GST
Got 3 Replies
GST
Dear Sir, May we request you to kindly advice & guide us on the applicability of GST & RCM on our case. Your comment & support will be highly appreciated. Stage 1 - We are presently buying hotel .....

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..... & transport from Bhutan. The Bhutan operator does not charge any GST as it does not fall in Indian tax jurisdiction. Hence let take our purchase price as INR 100 Stage 2 - Now when we sale the package to X agency in Indian then we bill the agency with GST of 5%. Here our sale become our Bhutan Purchase INR 100 + Our markup 10 (100 + markup 10 ) + GST of 5% on 110 +5% GST = INR 115.50 Comments .....

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..... required * Are the above transaction fine as per the current GST procedure * Do we need to charge RCM of 5% on our purchase price from Bhutan i.e 100 * In case we charge RCM then our tax components become 10% * Will we get input credit for paying the RCM for oversea supplier who is not part of Indian tax jurisdiction. * In case we don't get input credit then our product become 10% higher .....

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..... in compare to any direct supplier from Bhutan to come to india and lock in business. Anyway we are already higher by 5% as we are paying GST of 5% hence RCM will become a extra loading for us. Your comment & advice will be highly appreciated Regards Rajiv Reply By Kishan Barai: The Reply: RCM would be Applicable if purchase price is above 5000 INR from India Only Reply By Ganeshan Kalyani: .....

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..... The Reply: In my view purchase from Bhutan is an import. The IGST paid on such purchase is an eligible credit. Reply By subramanian vijayakumar: The Reply: Yes it is interstate. Supply. IGST IS ATTRACTED I THINK IAM SUPPOSED TO BE CORRECT
Discussion Forum - Knowledge Sharing .....

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