Question ID :
39256
GST ON RCM ON RAW COTTON
Dear Sir
Our client is working as kacha artiya. the payment is received by him and is given to the agriculturist after deducting his commission. He did not record this purchase and sales in his books and only account his share of the commission. Now i want to ask whether he will be liable to reverse charge even though he does not record the same in his books. Or he will be liable only on those purchases of raw cotton which he records in his books as purchases. We are however paying GST at the time of sale.
Posted by
VIPIN GUPTA
on
Jul 01, 2019
Filed Under
GST
Answer ID :
78991
your question is not clear. now both the principal as well as agent are liable to pay tax on the transaction. when you purchase raw cotton from agrlst. pay tax on RCM.( not applicale now) and take ITC to set off against GST on sales.
Posted by
CA. VENKITARAMAN K V on
Jul 06, 2019