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Reverse Charge Mechanism

23 April 2020

will I need to take GST number, if I deal in goods which is not taxable and I take a service (security) is which gst is payable as per RCM??

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3 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14670 Points)
Replied 24 April 2020

If you are taking security services and paying tax under RCM , then as per section 24(iii) of the CGST act 2017 registration is compulsory .

please confirm with others also.

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Samyak Jain (18 Points)
Replied 24 April 2020

Security services (services provided by way of supply of security personnel) provided to a "registered person" .As per the wordings of provision , rcm has to be paid by registered person only and you are unregistered .Sec 24(iii) applies when there is liability to pay tax under reverse charge arises. Since in this case no liability arise. So no registration required.. This is my opinion and view. Please confirm others as well. Thanks

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Kirti Sharma (6 Points)
Replied 30 May 2020

Reply of Mr Prasad nilgul is correct. If you are taking any goods or services which are liable to pay tax under RCM then you have to Lake registration