Regarding GST

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This discussion clarifies whether Reverse Charge Mechanism (RCM) applies to service providers opting for the GST Composition Scheme. The consensus is that RCM is generally not applicable to businesses under the composition scheme, unless they receive specific goods or services where RCM is mandated. For an IT service provider on the composition scheme, RCM is not typically required.

jignesh sitapara

jignesh sitapara (Querist)
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01 March 2021 My clients is Composition Scheme For Service Provider Under GST Act. And he paid 6% (3% cgst & 3% sgst) every quarter. Now, my question is RCM require in this such case ? if yes, than whose liability service provider or Service Recipient ?
Please help me.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 March 2021 RCM not applicable on composition scheme.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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02 March 2021 RCM applicable if services or goods received on which rcm is applicable. So it depends which services or goods were received by your client

jignesh sitapara

jignesh sitapara (Querist)
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02 March 2021 We are provide only IT service.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 March 2021 RCM applicable on hiring of cabs.

jignesh sitapara

jignesh sitapara (Querist)
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05 March 2021 Sir, we are not engage in cab service. We are only filing IT return & audit report and other service related to income tax. Now RCM applicable in such case, if We are composition scheme ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 March 2021 In such a case no RCM applicable.

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