Articles Compiles list of 84 types of expenses on which we have discussed if GST is applicable or not and if applicable what will be rate of GST and Eligibility for Input Credit-
| 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 | Salary, 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 / Diesel/ 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 Government | 0% | No | No | No |
| 16 | Fine & Penalties | 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 vehicle | 5% | Yes | Yes | No |
| 24 | Payment to Goods Transport Agency | 5% | No | Yes | Yes |
| 25 | Traveling 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 | Traveling Expenses International | 28% | Yes | Yes | No |
| 71 | Amusement Park/ Theater Ticket | 28% | Yes | Yes | Yes |
| 72 | Cold drink | 40% | Yes | Yes | No |
| 73 | Repairs & maintenance 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 | Diwali/ New year Gift purchased & debited to P & L | Applicable Rate | Yes | Yes | Yes |
Notes:
1) If repair & maintenance 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 address and place of business is mentioned then only one should claim the input credit.
3) Input 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 recipient 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 Notification No.8/2017 dated 28/06/17 then same are not required to be submitted in GST return.
Author Bio
TRANSPORT CHARGES PAID TO NON GTA , RCM APPLICABLE OR NOT FOR REGISTERED DEALER
useful message
Thanks you
Is the above listed items are applicable to construction company, or their is any particular items for construction company
Is RCM is applicable for payments made to URD Supplier under GST Act-
1. Labour charges paid for Repairs and Maintenance of Electrical Components.
2. Labour charges paid for Repairs and Machinery & Equipements.
3. Labour Job work of Other.
If yes then please guide related notification or circular references.
we have received invoice professional fees
without GST
how to book this invoice in RCM 18% or post 0%
kitne amount ke bad reverse charge lagana hai
payment paid for labour charge for some work RCM aplicale or not???
kindly inform whether an organisation can reimburse hotel bills of rs. 1200/- per day, but the hotel authorities have not charged any gst and there is no mention of hotel gst no in the bill and the bill is handwritten
THANKS FOR YOUR INFORMATION,
I JUST WANT TO KNOW THE RCM MINIMUM AMOUNT.
(MINIMUM AMOUNT FOR RCM PAYMENT)
IS RCM IS APPLICABLE IF A PVT LTD COMPANY PAY COMMISSION TO THE BROKER ??
Fee remitted to the Govt for a service is taxable under RCM ?
is there any exemption for these kind of fee (Slab system, means upto 1000 exempted 1001 and above taxable etc.)?
Note Reference is Missing
Sir can you please provide me the relevant notification number of central tax. Thankyou
sir,
please give rcm list
how many category in rcm under gst
sir,
We bought diwali exp.from URD for distribution to our clients/staffs. My question: – 1. If in invoice, GST is included – Whether can we take input of GST? 2. If in invoice, GST is not included – Whether we are under obligation to pay under RCM? If yes, can we take input?
maintenance of Canteen for staff tea is eligible for input of GST or Not
Respected Sir,
Plz explain easily
Input 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.
Dear Sir,
Kindly confirm whether any GST applicable on Salary / of Remuneration to partners in partnership firm, if yes, then what is the rate and is it on RCm basis ?
Prakash
VERY GOOD. NICE EFFORTS TAKEN. ONE DOUBT THAT INSURANCE OF VEHICLE IS ALLOWED AS ITC. IS IT ALLOWED?
On cold drinks Rate of tax is mentioned 40% entry no. 72
Restaurants are having tax rate 18% while mentioned 28% – Entry no. 67
RCM is applicable if service provider is unregistered and certain category which are mentioned in act.
Sir, Rent paid for residential use is @ 0%, so, rent paid for premises for residential use for staff is 0% or @ 18%, & if 0%, can be claim under P&L???
Good informative . keep it up.
Dear Mr. Deepak basically the coverage of RCM arises when the bill is paid to an un regd dealer. When a bill already suffered gst where is the question of RCM. For ex . Telephone bill, insurance , Ac hotel and restaurents all are giving bill including gst. So where is the question of rcm in such cases. Pl clarify
where is the note 1
Thanks for information.nicely discussed
Regards
Narendra Ku Dash
Advocate & Tax Consultant
Odisha
Good article on RCM by Deepak Kr Gupta. However, notes are missing. please provide.
REFERENCE NOTES ARE MISSING . LIST IS HELPFUL THANKS SIR
Notes are missing, Please share the notes.
Dear Sir,
Notes not available, kindly provide
Sir,
In above expense list, expenses below Rs.5,000/- are exempted from GST levy.
Confusion still prevails in case of payment to GTA
If I pay rcm on payment to Transporter @ 5% then I won’t be allowed ITC??
Further, what about interest payment to Non Banking Finance Co. whether GST under rcm to be paid to them?
Dear Gupta ji, Very informative post indeed. But the Notes are missing for readers to fully understand it. Please advise the type of items covered in “Travelling expenses – International”. Thanks.
What is meaning of input credit allowable. Is it not correct that you have to book the liability first for RCM and then claim input on he tax deposited by the dealer. Meaning thereby, that RCM is neutrlised and it is bookes as expenditure. Kindly clear this point. Like job work of textiles. One got the job work from unregistered dealer under GST and the dealer has to pay RCM. Is that dealer is not required to pay tax by RCM mechanism on Jobwork and adjust the payment by way of input tax on the tax deposited on jobwork.
It is just fantastic. But Note1,2,3 not found.
Please send the same
Deepak ji
It is very helpful, i wanted to change /add less according to my clients so can u send me this on [email protected]
Dear Deepakji,
Very useful post. But Note 1, 2 & 3 is not visible on the post. Would you be kind enough to post full post or Note 1, 2 & 3 on my email ID to [email protected].
Sir,
Expenses list under GST is very much helpful.But refer Note 1,2 and 3 are not available. Kindly provide these.
As per section 17(5) articels distributed as free gifts then ITC is not available point number 83 & 84, correct me if i am wrong.
Notes details should be provided. Its very good article.
What will be the practice if we take service from a tractor wala who not falls under Goods transport agency but works independently and does not give any invoice to the service receipent. Will That expence fall under 5000/- per day expence limit or will it fall under compulsary taxable service under Rcm.
Thanks for information
it is very useful. all confusion regarding RCM is cleared now.
THANKS FOR THE INFORMATION GIVEN IN YOUR ARTICLE IT IS USEFUL ALL REVERSE CHARGE PAID TAX PAYERS.
Please upload refer note which you have mention above.
Please provide note details
Sir
Kindly explain that you have mentioned Refer note 1,2,3. i need the details of Refer note
PLEASE MENTION THE GST RATE ON SUPPLY OF MOTOR VEHICLE TO COMPANY AND/OR ANY EDUCATIONAL INSTITUTE (PICK UP THE STAFF FROM RAILWAY/BUS STATION AND DROP AT THE THEIR PREMISES AND VISE VERSA)
THE CONTRACT IS MONTHLY BASIS AND TDS ARE DEDUCTED AT APPLICABLE RATE
1 THE SERVICE PROVIDER IS OWNER OF THE MOTOR VEHICLE AND INPUT CREDIT TAKEN
2 THE SERVICE PROVIDER IS OWNER OF THE MOTOR VEHICLE AND NO INPUT CREDIT TAKEN
3 THE SERVICE PROVIDER IS TAKEN THE MOTOR VEHICLE ON RENT BASIS AND CAN SERVICE PROVIDER TAKE INPUT CREDIT
4 THE SERVICE PROVIDER IS TAKEN THE MOTOR VEHICLE ON RENT BASIS AND IF SERVICE PROVIDER WILL NOT TAKE INPUT CREDIT
Referring notes are missing, pl provide the same.
Dear Deepak
Please provide Notes details as you referred in the chart. Also enlighten two rates mentioned in the certain cases Ex.Uniform Allowance to employees.
Reference notes are missing
GOOD