RCM payment from UR and Registered suppliers 2B Vs books

[Govinda Raju]

HI,

Further to Notification number 40/2021, RCM reflecting in GSTR-2B only to be considered for books and liability to be discharged.

clarification is being sought as URD transporter value will not be reflected in GSTR-2B but we will be accounting an creating liability in books.

which value to be shown in our GSTR-3B as per 2B or as per books i.e. 2B values + URD transporter or URD suppliers values which is liable to RCM

[KASTURI SETHI]

(1) A registered person who pays GST under RCM is deemed service supplier. He is not actual supplier. He is actual receiver. If transport services are received from un-registered person, self-invoice will be raised and uploaded on the Common Portal by the service recipient (deemed service provider). Thereafter, tax paid (ITC to be claimed) will be reflected in GSTR 2B.

(2) A registered person paying tax under RCM has nothing to do with sale value of supplier. The value of the goods or services so received by the recipient under RCM has to be accounted for in the books of account of the supplier.

(3) There will be no mismatch as value will be shown under the column of RCM by the recipient in his GSTR 3B return.

[Ganeshan Kalyani]

Only ITC is restricted as per GSTR-2B and not the liability. RCM liability to be accounted in books as per actual transaction and accordingly tax to be paid thru GSTR-3B. Also, ITC on purchase from registered dealer under forward charge is required to be ensured that it appears in GSTR-2B. The condition does not specifies for RCM. So RCM continues to be paid and ITC of the same be claimed as per books.

[Shilpi Jain]

Agree.. GSTR-2B is now used for checking ITC availing... This is not to govern the RCM liability.. mere non appearance in gstr2b cannot lead to a situation of no liability

[Shilpi Jain]

Also the self invoice need not be presently reported in GSTR-1 by the recipient. So this will need t appear in GSTR-2B..

So in GSTR-3B show liability as per booksB

[CA Hemanth Kumar]

Irrespective of what it appears in GSTR-2B, RCM needs to be paid as per books and once we edit RCM liabilities in auto populated GSTR-3B, it may give u a warning red indication, we need to keep details/reasons for the same. We may not know when dept will issue a sudden notice for system computed difference .

AI Summary

Reverse charge mechanism liability must be recorded and paid as per books even if absent from GSTR-2B. RCM liability must be recorded and paid by the recipient as per its books irrespective of whether the transactions appear in GSTR-2B; GSTR-2B is used to verify entitlement to claim input tax credit, while RCM payment and reporting in GSTR-3B should follow accounting records. For supplies from unregistered transporters the recipient must raise and upload a self invoice so the tax paid can be reflected for ITC, and taxpayers should retain supporting details when auto populated returns differ from book entries.