21 June 2024
Suppose ABC Limited has taken a service from XYZ Limited and this service is qualified under Reverse Charge. XYZ Limited has not provided any tax invoice to ABC Limited. Now the issue is:
i) ABC Limited has to discharge tax liability under RCM but it cannot taken ITC since tax invoice has not been issued by M/s XYZ Limited. This is a loss to M/s ABC since they might not be able to avail ITC even if they have discharged GST liability under RCM
ii) If M/s ABC opts not to discharge liability under RCM then will it be a non compliance for them
I request all experts to provide their valuable opinion in this matter
CAclubindia
