GST on Expense under RCM
Sr. No | Nature of Expense | Rate of Tax | Whether registered supplier will levy tax |
Reverse Charge(If supply is unregistered) |
Whether Eligible for Input Credit |
1 | Salaray, wages & bonus paid to employee | 0% | No | No | No |
2 | Electricity bill | 0% | No | No | No |
3 | Water Charges/ Plain Water | 0% | No | No | No |
4 | Bank Interest | 0% | No | No | No |
5 | Professional Tax | 0% | No | No | No |
6 | BMC Tax | 0% | No | No | No |
7 | Building / Property Tax | 0% | No | No | No |
8 | Rent Deposits | 0% | No | No | No |
9 | Other Deposits | 0% | No | No | No |
10 | Petrol / Disel/ CNG/Kerosene Expenses (Motor Spirit) | 0% | No | No | No |
11 | Liquor Expenses | 0% | No | No | No |
12 | Registration Fees (ROF / ROC / RTO etc) | 0% | No | No | No |
13 | Bad Debt | 0% | No | No | No |
14 | Donation | 0% | No | No | No |
15 | Labour Welfare Contribution to Goverment | 0% | No | No | No |
16 | Fine & Penalities | 0% | No | No | No |
17 | Conveyance Expense – Non AC Taxi, Auto, Bus, Train | 0% | No | No | No |
18 | Loading & Unloading in relation agricultural produce/ Hamali | 0% | No | No | No |
19 | Rent Paid for residential use | 0% | No | No | No |
20 | Godown Rent for agricultural produce | 0% | No | No | No |
21 | News paper & magazines | 0% | No | No | No |
22 | Remuneration to Director & partners | 0% | No | No | No |
23 | Conveyance Expense – Radio Taxi like OLA & UBER or other AC vechile | 5% | Yes | Yes | No |
24 | Payment to Goods Transport Agency | 5% | No | Yes | Yes |
25 | Travelling in Train by AC or First class | 5% | Yes | Yes | No |
26 | Job Work / Labour Charges for textile yarn & textile fabric | 5% | Yes | Yes | Yes |
27 | Job Work / Labour Charges for diamond , jewellery & precious metal | 5% | Yes | Yes | Yes |
28 | Job Work / Labour Charges for printing of books, journals & periodicals | 5% | Yes | Yes | Yes |
29 | Food & Beverages Expense (Non AC restaurant) | 12% | Yes | Yes | No |
30 | Room Rent in a hotel, lodge (Rs.1000 to 2500 per room per day | 12% | Yes | Yes | Yes |
31 | Fuel (Furnace Oil/LPG) | 18% | Yes | Yes | Yes |
32 | Sales Promotion/Business Promotion | 18% | Yes | Yes | Yes |
33 | Food & Beverages Expense (AC restaurant) | 18% | Yes | Yes | No |
34 | Mineral water | 18% | Yes | Yes | Yes |
35 | Truck/ Tempo Hire Charges | 18% | Yes | Yes | Yes |
36 | Club & Membership fees | 18% | Yes | Yes | No |
37 | Advertisement Charges / Hoarding / Magazine / News Papers / Media | 18% | Yes | Yes | Yes |
38 | AMC Charges | 18% | Yes | Yes | Yes |
39 | Bank Charges – Service charges recovered | 18% | Yes | No | Yes |
40 | Broker Fee & Charges | 18% | Yes | Yes | Yes |
41 | Cancellation Charges | 18% | Yes | Yes | Yes |
42 | Extended Warranty | 18% | Yes | Yes | Yes |
43 | House Keeping Charges | 18% | Yes | Yes | Yes |
44 | Insurance paid on goods & vechile | 18% | Yes | Yes | Yes |
45 | Health Insurance | 18% | Yes | No | No |
46 | Payment to advocate | 18% | No | Yes | Yes |
47 | Loading & Unloading – others/ Hamali | 18% | Yes | Yes | Yes |
48 | Training Expense | 18% | Yes | Yes | Yes |
49 | Payment to Post office for Speed post & parcel post | 18% | No | Yes | Yes |
50 | Postage and Courier Charges | 18% | Yes | Yes | Yes |
51 | Printing & Stationery (Flex Printing, Broad Printing, Notice Printing) | 18% | Yes | Yes | Yes |
52 | Recruitment Expenses | 18% | Yes | Yes | Yes |
53 | Commission Paid | 18% | Yes | Yes | Yes |
54 | Rent Paid for commercial use of premises | 18% | Yes | Yes | Yes |
55 | Godown Rent for commercial purpose | 18% | Yes | Yes | Yes |
56 | Repair and Maintenance – Building / Electrical/ P& M / Others | 18% | Yes | Yes | Refer Note 1 |
57 | Room Rent in a hotel, lodge (Rs.2500 to 7500 per room per day | 18% | Yes | Yes | Yes |
58 | Payment for Sponsorship Services | 18% | Yes | Yes | No |
59 | Security Charges | 18% | Yes | Yes | Yes |
60 | Telephone, Mobile & internet Charges | 18% | Yes | No | Refer Note 2 |
61 | Sundry Expenses | 18% | Yes | Yes | Yes |
62 | Job Work / Labour Charges for garment processing | 18% | Yes | Yes | Yes |
63 | Job Work / Labour Charges (Other) | 18% | Yes | Yes | Yes |
64 | Sitting Fees, Commission or any other payment made to director by company | 18% | Yes | Yes | Yes |
65 | Audit Fees, Account Writing , Professional Fees (other than Advocate) | 18% | Yes | Yes | Yes |
66 | Research & Development Expenses | 18% | Yes | Yes | Yes |
67 | Food & Beverages Expense (AC restaurant) | 28% | Yes | Yes | No |
68 | Wall Paint | 28% | Yes | Yes | No |
69 | Room Rent in a hotel, lodge Above Rs.7500/- | 28% | Yes | Yes | Yes |
70 | Travelling Expenses International | 28% | Yes | Yes | No |
71 | Amusement Park/ Theatre Ticket | 28% | Yes | Yes | Yes |
72 | Cold drink | 40% | Yes | Yes | No |
73 | Repairs & maintainance Charges if it has not resulted into immovable property | 18% / 28% | Yes | Yes | Yes |
74 | Electrical Fittings | 18% / 28% | Yes | Yes | No |
75 | Staff Uniform Expenses | 5% / 12% | Yes | Yes | Yes |
76 | Packing material & Packing Charges | 5%/ 12% 18% | Yes | Yes | Yes |
77 | Plant & Machinery | Actual Rate | Yes | Yes | Refer Note 3 |
78 | Furniture & Fixture | Actual Rate | Yes | Yes | Refer Note 3 |
79 | Motor Car | Actual Rate | Yes | Yes | No |
80 | Building | Actual Rate | Yes | Yes | No |
81 | Office Equipment including Computer, Software & Hardware | Actual Rate | Yes | Yes | Refer Note 3 |
82 | Free Gift given to staff (Exempt upto Rs.50000/- per staff p.a) | Applicable Rate | Yes | Yes | No |
83 | Free Gift given to staff (Above Rs.50000/- per staff p.a) | Applicable Rate | Yes | Yes | Yes |
84 | Divali/ New year Gift purchased & debited to P & L | Applicable Rate | Yes | Yes | Yes |
Notes: | |||||
1) If repair & maintainance expenses resulted into immovable property than input credit is not available | |||||
2) If Telephone, Mobile & Internet bill is in the name of the company and adress and place of business is mentioned then only one should claim the input credit | |||||
3) | |||||
Inpur credit is available fully. However if it is sold/disposed off/ scrapped/ thrown away within 5 years, then input credit @ 5% per quarter is available for the used period and balance is to be reversed for not used fully at the time of date of sale. | |||||
4) Input credit is available only if goods & services are used for business. If good or | |||||
services are used for personal purpose then input credit is not available. If goods & services are used partially for personal use and partially for business use then input credit is available partly in proportion to business use. | |||||
5) Input credit is not available if outward supply of goods or services is exempt from | |||||
payment of tax. | |||||
6) As per Notification No 8/2017 dated 28/06/17, it is provided that if the aggregate | |||||
value of goods or services or both debited to Trading A/c or expenses debited to Profit & Loss A/c or purchase of any asset obtained from unregistered suppliers is less than Rs.5000/- in a day, then tax is not required to be paid for such inward supplies by the receiptent for that particular day. | |||||
7) Details of all purchase of goods or services debited to Trading A/c or purchase of any fixed asset are required to be submitted in GST return whether purchased from registered person or unregistered person or from composition dealer. | |||||
8) However, if any expense items are purchased from unregistered supplier & escape | |||||
the payment of tax in view of Notifcation No.8/2017 dated 28/06/17 then same are not required to be submitted in GST return. |