RAJESH ACCOUNTANT

[rajesh subramanian]

DEAR SIR

WE ARE 100% EOU PVT LTD COMPANY, WE FROM COMPOSITION DEALER, WE ARE RECEIVING BILL FOR BOTH FABRICATION CHAREGES WITH MATERIALS ( ie MATERILAS + LABOUR ) EXAMPLE PAINTING CHARGES WITH COST OF PAINT AND GST NOT CHARGED IN THE BILL

1. IN THIS SCENARIO HOW CAN WE MAKE ACCOUNTING ENTRY.

2. RCM IS APPLICABLE ?

[Shilpi Jain]

1. IN THIS SCENARIO HOW CAN WE MAKE ACCOUNTING ENTRY.

Composition dealer cannot collect GST. Account this as a normal purchase without GST. However, whether the vendor can opt for composition will have to be checked at his end.

2. RCM IS APPLICABLE ?

No RCM

AI Summary

Composition dealer treatment: treat supplier invoices without GST as regular purchases; reverse charge is not applicable.
When a supplier is a composition dealer and issues a combined materials-plus-labour invoice without GST for fabrication services, the recipient must treat it as a regular purchase without GST in accounting and should verify the supplier's composition status; reverse charge does not apply and the recipient need not pay tax under RCM on that supply.