🇮🇳India

वेंडर Reverse Charge Mechanism गलतियाँ

2 verified sources

Definition

Art supplies from small unregistered vendors trigger RCM at PO stage; poor vendor management leads to unclaimed credits or penalties for non-payment.

Key Findings

  • Financial Impact: ₹5,000-25,000 per quarter on excess RCM payments + 18% GST penalty
  • Frequency: Per unregistered vendor transaction
  • Root Cause: Lack of vendor GSTIN check at PO creation

Why This Matters

The Pitch: Retail Art Supplies firms overpay ₹1-3 लाख/year on RCM for vendor POs. Automation flags unregistered vendors and computes exact RCM liability.

Affected Stakeholders

Procurement Officer, Finance Controller

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

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