Find
Yes. Composition taxpayers pay tax on supplies received under reverse charge, such as legal services from an advocate or GTA freight in specified cases, at the normal rate, in CMP-08.
GST
Reverse charge purchases in CMP-08
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Provisions
Sec 9(3), CGST Act 2017; Rule 62, CGST Rules 2017
Analysis
RCM tax is not at the composition rate. For an advocate's fee of ₹20,000, RCM at 18 percent is ₹3,600, paid in cash. No ITC is available to you on this. Many composition dealers miss RCM, which shows up in GSTR-4 checks.
Close
- List RCM purchases in the quarter.
- Compute tax at the normal rate for each.
- Enter them in the inward supplies row of CMP-08.
- Pay in cash with the composition tax.
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