Hi Buddy,
GST is often collected from customers who purchase goods and services. The buyer of the goods or services, rather than the seller, are sometimes responsible for collecting the GST. This is referred to as the Reverse Charge Mechanism or RCM GST.
Check out the NoBroker legal assistance service for more legal queries regarding property buying and selling What is the limit for RCM under GST:The threshold limit of Rs. 20 lakh (Rs. 10 lakh for special category states excluding J and K) does not apply to someone who is required to register under GST and pay tax under reverse charge.
The tax rate that is relevant to these goods/services is the rate that should be applied. On reversal charges, GST Compensation Cess is also applicable. No tax is due under RCM if the products or services are exempt or zero-rated.
The RCM on GST limit must be paid by composition dealers at standard rates (5 percent, 12 percent, 18 percent, and 28 percent), not at composition rates (1 percent or 5 percent ).
What is RCM on freight limit under GST:
To understand the RCM limit in GST, you must know the following items would be excluded from GST when it comes to freight expenses in India:
Transport of agricultural goods
Transport of milk, salt, and food products, such as rice, flour, and pulses
the movement of organic waste
Moving newspapers or magazines that have been registered with the Newspaper Registrar
Delivery of aid to those affected by natural or man-made catastrophes, calamities, accidents, or incidents
Delivery of defence or military gear
Transportation of any commodities, provided that the total sum charged for each shipment that is transported in a single carriage is not more than Rs. 1,500.
Shipment of any commodities, provided that the total amount paid for the transportation of all such products for a single consignee is not greater than Rs. 750.
I would like to conclude here about the RCM GST. I hope this helps:)
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Authors Of The Question
What Is The Limit For RCM Under GST?
Santosh
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1 Answers
2 Year
2022-07-29T15:27:15+00:00 2022-07-29T15:27:19+00:00Comment
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