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GST liability if return not due to exemption services

Others 235 views 1 replies

Lingam Domala

6 Points Posted on 21 July 2022

Dear Sir,

We are a transporter (GTA) which is an exempted service as per notification no.5/2017 does not need to take GST registration but we have taken registration because some customers need a GST certificate and every month we are filing nil return due to exempted services

Now one of my customer says 5% GST will be recovered from for mismatch in GSTR1 return as we have filed nil return.

So pls clarify.

Thanks and regards
Lingam

Replies (1)

CA. ANKIT PANDYA

682 Points Posted on 21 July 2022

Instead of filing nil return, you should declare all invoices raised on your customer with indication on the face of invoice and in GSTR-1 as - "Reverse charge applicable - YES".

However liability to pay GST under RCM is of the recipient ie your customer and he cannot recover it from you just for the reason of not showing it in GSTR-1. because Rules of payment of GST under RCM are different. customer is liable to discharge the RCM liability either on completion of 60 days from the date of invoice or payment date to supplier which ever event happens earlier.