Reverse Charge to Forward Charge - GST Procedure

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A business owner asked if their GTA vendor could switch from charging GST under Reverse Charge Mechanism (RCM) to Forward Charge mid-financial year. The expert clarified that this change is not permitted mid-year and must be done from the start of the next financial year. A declaration in Annexure V needs to be filed online by March 15th of the preceding financial year to opt for the Forward Charge.

Dipesh

Dipesh (Querist)

07 February 2023 Hi Expert,

One of our GTA vendor has issued invoices for this FY till Dec-23 under RCM & from Jan-23 onward he is issuing invoice under forward charge. Is there any provision to change from RCM to Forward Charge in between FY. ???

Please guide.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 February 2023 In between FY not allowed. Allowed from 1st April.
The option by GTA to itself pay GST under forward charge on the services supplied by it shall be exercised by making a declaration in Annexure V on or before the 15th March of the preceding Financial Year.

Dipesh

Dipesh (Querist)

08 February 2023 Thank You Sir.
Making declaration in Annexure V is online or offline procedure. ????

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 February 2023 File it online

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