Invoice without leving the GST components.
This query is : Resolved
06 March 2024
Dear Experts,
1 A company raised the purchase order its servoce providers towards availing the Advertisement services
2 At that time, the service provider was a GST registered person.
3 After that, the service provider's GSTIN was getting cancelled.
4 Now the supplier has raised the invoice without leving the GST components.
5 In this case, whether RCM will be applicable for this transactions or not?
6 Pls clarify
1 A company raised the purchase order its servoce providers towards availing the Advertisement services
2 At that time, the service provider was a GST registered person.
3 After that, the service provider's GSTIN was getting cancelled.
4 Now the supplier has raised the invoice without leving the GST components.
5 In this case, whether RCM will be applicable for this transactions or not?
6 Pls clarify
06 March 2024
RCM not applicable in such a case.
Message likes :
1 times
06 March 2024
Yes I agreed with Mr CA R Seetharaman Sir.... RCM not applicable in this transaction. Also no more issues between Purchase Order and Billing.
Message likes :
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16 August 2025
In the case of Advertisement Services, RCM (Reverse Charge Mechanism) is not generally applicable, except in a few specific scenarios prescribed under Notification No. 13/2017 – Central Tax (Rate).
🔎 RCM is applicable on Advertisement Services only in the following situations:
Services provided by an advertising agency to the Central Government, State Government, Union Territory, or a Local Authority – the recipient (Government/Authority) is liable to pay GST under RCM.
If the advertising services are procured from a non-resident service provider (outside India), then RCM is applicable under the import of services provision.
👉 In all other B2B cases (like a company hiring an ad agency or digital platform within India), the supplier (advertising agency/platform) has to charge GST under forward charge.
✅ So, in your above case (Invoice without GST components) –
Unless the recipient is Government/Local Authority or the service is imported, RCM is not applicable. The supplier must issue a proper GST-compliant invoice with tax components under forward charge.
🔎 RCM is applicable on Advertisement Services only in the following situations:
Services provided by an advertising agency to the Central Government, State Government, Union Territory, or a Local Authority – the recipient (Government/Authority) is liable to pay GST under RCM.
If the advertising services are procured from a non-resident service provider (outside India), then RCM is applicable under the import of services provision.
👉 In all other B2B cases (like a company hiring an ad agency or digital platform within India), the supplier (advertising agency/platform) has to charge GST under forward charge.
✅ So, in your above case (Invoice without GST components) –
Unless the recipient is Government/Local Authority or the service is imported, RCM is not applicable. The supplier must issue a proper GST-compliant invoice with tax components under forward charge.
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