Dear Sir,
Myself Sethuraman from Tirupur, a knitted garments manufacturer registered under GST. I would like to know whether I can take Input tax credit when i sell to interstate dealer who is unregistered. If so, can i adjust the ITC in the same month or only in the possible? Will it fall under RCM bcoz a transaction happens between a registered and unregistered dealer.Hello Sir,
Yes, you can claim ITC even if you make a sale to an unregistered dealer as you will be charging him GST on the sale no matter he is registered or not.
RCM is applicable if you make a purchase from an unregistered dealer.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Further, can I adjust that ITC for the same month with my purchases or I can adjust it in the coming month only?
Same month.
Hi,
Sorry, which ITC you are talking about. When you sale to inter state dealer, that dealer will bear GST and not you. If you purchase from an unregistered dealer then you have to pay GST under RCM and then you can claim ITC.
Please feel free to call/ revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Hi all,
Thanks for the answers. These are my interpretations based on the replies,
1. RCM applies only when i Purchase from an unregistered dealer irrespective of whichever state he belongs to,
2. I only need to be registered myself under GST for selling to dealers belong to other states, also it doesnt matter whether the other state dealer is registered or unregistered.
Am I right on these?
One more thing, sometimes i used to buy from unregistered dealers for which I am ready to pay RCM, but they dont offer me any invoice, in such case, what purchase invoice format i should use, if any general formats available, please share it...
Thanks in advance.Hi
Yes, your interpretation is correct.
Please feel free to call/ revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Hello Sir,
You will have to ask them to issue you an invoice. How will you prove the purchase then if there is no invoice or bank payment.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP