If Per day payment is below 5000, Bill is 6000, is RCM applicable?

[RameshBabu Kari]

If Per day payment is below 5000, Bill is 6000, is RCM applicable?

AI Summary

Clarification on Reverse Charge Mechanism: RCM applies if billed by unregistered dealer, no ITC restriction with daily bills under 5000. A query was raised about the applicability of Reverse Charge Mechanism (RCM) under GST if the per day payment is below 5000 but the bill is 6000. One response indicated that RCM applies if the bill is from an unregistered dealer. Another response suggested that billing below 5000 per day might be used to avoid GST, but there is no restriction on claiming Input Tax Credit (ITC) in the same month. It was emphasized that cash must be deposited against the RCM invoice, and there is no limitation on future ITC claims.