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Applicability of GST

25 May 2020

A non registered income tax consultant firm supplying services to registered company .Whether GST is applicable on RCM or not?

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6 Replies

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 25 May 2020

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

2 Like

Rajesh Singh (41 Points)
Replied 26 May 2020

Thanx for suggestions.

sabyasachi mukherjee (25959 Points)
Replied 26 May 2020

NO RCM

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 26 May 2020

RCM not to be paid in this case.

Shivam RC (Student) (23683 Points)
Replied 26 May 2020

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.

3 Like

CA Arun Kumar Tiwari (CA in Practise) (445 Points)
Replied 28 May 2020

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.