GST on retainership fee

This discussion clarifies the Goods and Services Tax (GST) implications on retainership fees when services are provided by an unregistered dealer to a corporate entity. It explores whether such fees are taxable under Reverse Charge Mechanism (RCM) or Forward Charge Mechanism (FCM) and the applicable tax rates. The advice suggests that it is eligible Input Tax Credit (ITC) and can be accounted for as input receivable, referencing Section 22 of the GST Act.