SERVICE RECEIPENT IS LIABLE TO PAY GST UNDER RCM

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This query is : Resolved

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This discussion clarifies who is liable to pay GST under the Reverse Charge Mechanism (RCM) when goods are transported. If the supplier dispatches goods on a 'paid basis', the supplier is responsible for RCM GST. However, if the goods are sent on a 'to pay' basis, the goods receiver becomes liable for the RCM GST.

Marimuthu

Marimuthu (Querist)
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11 August 2023 Dear Experts,
A company is purchasing the goods from its suppliers
GST registered Supplier dispatches the goods on "Paid Basis" to our premises.
The transporter also registered person under GST.
The transporter declares in their LR copy as " SERVICE RECEIPENT IS LIABLE TO PAY GST UNDER RCM".

The query:
1.Here who needs to pay the GST under RCM? Either the company or the supplier?
2.Incase, if the supplier dispatch the goods on "TO PAY" basis, will the responsibility to discharge the GST liability under RCM will change?