service recipient have any consequential effect?

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This discussion clarifies the implications for a company paying GST under Reverse Charge Mechanism (RCM) for security services when the registered service provider fails to file their GSTR-1. The key takeaway is that the service recipient's correct discharge of RCM liability, including payment and disclosure in GSTR-3B, protects their Input Tax Credit (ITC). While the supplier's non-compliance may lead to departmental scrutiny, it doesn't automatically penalise the recipient if they have fulfilled their obligations and maintained proper documentation.

Marimuthu

Marimuthu (Querist)
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25 March 2024 Dear Experts,
1 A company is availing the security services from a GST registered person,
2 Since the RCM is applicable, the company is discharged its lability.
3 Now the query is
4 Whether the service provider needs to FILE GSTR 1 on invoice wise basis.
5 If the service provider not filed, will the service recipient have any consequential effect?
6 Pls clarify

RAJA P M

RAJA P M (Expert)
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25 March 2024 Is that service provider (security service person) corporate...??? or other than corporate...??? what about receiver...??? is receiver is corporate...???

Marimuthu

Marimuthu (Querist)
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25 March 2024 Service provider : Partnership Firm registered under GST
Service Receiver: Corporate Sir

RAJA P M

RAJA P M (Expert)
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25 March 2024 In this case rcm applicable.

Message likes : 1 times

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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15 August 2025 If you’ve correctly discharged tax under RCM for security services, your entitlement to ITC is not impacted by the supplier’s failure to file GSTR-1. Your compliance—payment via cash ledger, disclosure in GSTR-3B, and maintenance of invoice and payment proof—is what matters.
Advice for the Recipient:
Disclose RCM correctly under Table 3.1(d) of your GSTR-3B.
Keep proper evidence—invoice, contract, proof of payment, etc.—to substantiate your RCM and ITC position during assessments.
If the supplier persisting in non-filing raises red flags in your GSTIN record, consider issuing a GST demand notice or reminding them to file GSTR-1 to maintain seamless ITC flow.
In essence, while the supplier’s default may invite departmental queries, there’s no automatic downstream penalty for the recipient who has otherwise complied in good faith.

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