Gst on amount claimed for legal arbitrator fees

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2018 We are 100% exempted Corporation under GST Provisions providing Finance Services to our State Agencies & RRB under different CG Schemes Further, we are registered under GST Act and filing NIL GST Return. Further, we are also exempt from Income Tax Acts we are providing Services for Social Welfare etc.Therefore, we are filing NIL GST Return under GST ACT.
During the Current Financial Year we (claimant) filed a legal suit against one of our State Challenising Agencies for Amount outstanding and paid Arbitration Fee as per ordered after deducting the TDS amount. Further, the order states as follows: Liberty is given to the claimant to get the reimbursement of the amounts paid on his behalf.
In view of the same, we discharge our liability and also paid GST on RCM Basis to the exchequer. Further based on the above case we have the following queries:
1. As we are providing 100% exempted services, whether we are liable to pay GST under GST Act.
2. For the Reimbursement of Arbitrator Fee, whether we are liable to raise Taxable Invoice including GST or not.

Nilesh

Nilesh (Expert)
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06 August 2018 You are liable for GST - Yes you will required to taxable invoice

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2018 Sir, Whether we are also liable to pay GST on reverse charge on arbitration fee although we are exempted corporation

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Nilesh

Nilesh (Expert)
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06 August 2018 Yes .. no exemption

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2018 Further, at the time of raising invoice w.r.t arbitration fee, can we set off/claim the cenvat credit paid on rcm on arbitration fees, as now we do not book any cenvat credit and charged the same to out pl account.

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2018 Further, as per our current practice, we are depositing GST (on rcm basis) on Arbitration Fee considering it as advance and at the time of court final decision we are raising debit note/credit note to our SCA/RRB for only basic amount exclusive of GST. SIR