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Applicability of GST
A non registered income tax consultant firm supplying services to registered company .Whether GST is applicable on RCM or not?
Replies (6)
Quick Summary
No RCM Applicability ,Assuming Service provider is not Lawyer.
GST on FC is applicable when Service provider is registered & as per Section 22 of CGST Act , threshold limit is 20lac .
So if the Aggregate Turnover of Service Provider is more then 20lac pa need to obtain Registration & required charge GST on FC
GST on FC is applicable when Service provider is registered & as per Section 22 of CGST Act , threshold limit is 20lac .
So if the Aggregate Turnover of Service Provider is more then 20lac pa need to obtain Registration & required charge GST on FC
Thanx for suggestions.
NO RCM
RCM not to be paid in this case.
Reverse Charge Mechanism is not applicable on Income Tax Consultant Firm. Section 9(3) of the CGST Act 2017 read with Notification No. 13/2017 - Central Tax ( Rate), dated 28.06.2017 does not covers Tax Consultancy Firms.
In this case, RCM (Reverse Charge Mechanism) is applicable. So accordingly Company is required to pay GST as the supplier being the Income Tax Consultant firm is Unregistered. So in this case Company is required to comply all GST compliances.
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