Rcm cgst/sgst or rcm igst

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This query is : Resolved

DHEERAJ KUMAR (Querist)

28 August 2017 Sir
We are a GST Registered Company in Punjab

We have received a bill from a pvt limited company registered in Mumbai for consultancy charges of Rs. 15000 and they have not charged any GST as their turnover is less than the prescribed limit for registration.

Now we have to deposit RCM.

Query:-

Which RCM, RCM SGST/CST OR RCM IGST

Now as per our knowledge RCM can never be IGST. RCM can only be SGST/CST
whether it is correct

Pl confirm should i deposit RCM

Regards
Dheeraj Kumar

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 August 2017 You are right RCM can never be IGST but the law makers not considered it. Hence RCM IGST only applicable as per GST provisions.

Message likes : 1 times

DHEERAJ KUMAR

DHEERAJ KUMAR (Querist)

28 August 2017 Sir
There is a clause in which if an unregistered person provides any service to registered person then the location of registered person will be considered as place of supply of service
Section 12(2) of IGST Act,
The place of supply of services, except the services specified in sub-sections (3)
to (14),
(a) made to a registered person shall be the location of such person;

(b) made to any person other than a registered person shall be,––
(i) the location of the recipient where the address on record exists; and
(ii) the location of the supplier of services in other cases.

can we deposit RCM SGST/CGST under this claus

pl advise

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

20 July 2025 Key points:
1. Place of supply under IGST Act:

Section 12(2)(a) says:
"Services made to a registered person shall be the location of such person."
Since your company is registered, the place of supply is Punjab (location of recipient).
2. Which GST applies on RCM? CGST/SGST or IGST?

GST is split into CGST + SGST when both supplier and recipient are in the same state.
IGST applies when supply is inter-state (supplier and recipient in different states).
However, when supplier is unregistered, GST law treats the place of supply as location of recipient for services to registered persons.

This means:

Even if the supplier is from Mumbai (Maharashtra) and recipient in Punjab, since supplier is unregistered, place of supply is Punjab (recipient's location).
So intra-state supply for this purpose.
Therefore:

RCM tax = CGST + SGST, not IGST.
3. Do you need to pay RCM?
Yes, under Section 9(3) of CGST Act and Section 5(3) of IGST Act, recipient is liable to pay GST under RCM if the supplier is unregistered and providing taxable services.
So you should pay CGST + SGST on Rs. 15,000.

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