RCM ON
This query is : Resolved
22 November 2019
Our security service provider is registered in GST. After Jan-19 he still issuing GST charged invoice to us. Que is RCM liabilities is applicable on this invoice and can take ITC on such gst paid. we are Individual.
22 November 2019
As per Notification No. 29-2018/C.T. (Rate) Dated 31.12.2018 effective w.e.f. 01.01.2019 in case of security services (provided by way of supply of security person) tax to be payable under RCM by the recipient of services, if the
Service Provider: is Any Person other Body Corporate ( i.e. Individual, Sole-Proprietorship Firm, Partnership Firm etc.)
Service Recipient: is A Registered person is located in taxable territory (i.e. person registered under GST Law) other than person paying tax under Composition Scheme and Govt. etc.
Hence, if service provider is company i.e. Body Corporate, then that person is correctly charging GST under Forward charge and you are eligible for ITC if the same in business course.
However, if the service provider is individual etc i.e. other than body corporate, then you being the service recipient and registered under GST law are required to pay tax under RCM and take credit if the said services are used in the course of business.
Service Provider: is Any Person other Body Corporate ( i.e. Individual, Sole-Proprietorship Firm, Partnership Firm etc.)
Service Recipient: is A Registered person is located in taxable territory (i.e. person registered under GST Law) other than person paying tax under Composition Scheme and Govt. etc.
Hence, if service provider is company i.e. Body Corporate, then that person is correctly charging GST under Forward charge and you are eligible for ITC if the same in business course.
However, if the service provider is individual etc i.e. other than body corporate, then you being the service recipient and registered under GST law are required to pay tax under RCM and take credit if the said services are used in the course of business.
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24 November 2019
Means our security provider which is a proprietor is charging GST on his bill and we are registered in GST so i should rejected the bill and ask him to provide us a bill of supply without gst and paid RCM on such security expenses.
24 November 2019
Yes , Your understanding is correct .
Another option is- Even though he charge GST , You do not pay GST amount to him , instead pay to Govt under RCM
Another option is- Even though he charge GST , You do not pay GST amount to him , instead pay to Govt under RCM
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26 November 2019
I read the Notification no. 29/2018 its clear that security provided as supply of security persons is in RCM but which part of such notification clear that Service Provider can not charged as Forward charge just like registered transported charge tax on his bill so we does not paid RCM on such Transporters bill. Please Clear throw notification.
26 November 2019
You are suggested to go through the Section 9(3) of the CGST Act, 2017 which specifically states that in case of goods or services or both which have been notified as on which tax shall be paid under reverse charges by the recipient, all the provisions of act shall apply to service recipient accordingly meaning that in case of non-payment of tax by service recipient under RCM, department may recover the tax from service recipient by invoking provisions of Section 73 or 74 as the case may be and impose penalty. Further to this tax paid at that time may also not be allowed as ITC which is easily available now as per the law prescribed.
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27 November 2019
Sir from Jan 2019 our security provider charging GST and i am claiming ITC now he is saying because i am deposited such gst to govt and also reflects in your GSTR 2A so no need to reversed ITC Or Pay RCM on such previous Bill. He is correct in this regards or not.
27 November 2019
Now onward pay tax under RCM, does not pay to service provider. for earlier period, you have either 2 options first pay the tax under RCM and take ITC & correspondingly refund to be claimed by the service provider or second one ignore the earlier period and defend case before department if litigated.
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09 December 2019
If service provider is a registered dealer and charging tax and the same is reflecting in service recipient GSR-2A, then no need to pay on RCM basis. For the same if service recipient pay tax on RCM again, then it is dual taxation for one service.
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