Gst reverse charges question when nil gst is applicable

Gokul Kumar (Business) (21 Points)

09 September 2017  

Hello CA Club!

 

Our B2B Customer has deducted GST reverse charges from our payment as we haven't obtained our GST number yet.

My question is: the GST applicable is nil, so how is it decided what amount is deducted?

For those looking for further details, the situation is to do with the sale of rooms in a guesthouse. The tariff is under Rs. 1,000, which is why GST is Nil. However, it seems that the customer has deducted 12% from our payment claiming it is for reverse charges. Is that in compliance with GST rules, to deduct 12%?

I know that we should have gotten the number by now. That is our fault. Is the customer liable to provide us with any proof that this amount has indeed been paid to GST?

 

Thanks for the help!