Master in Accounts & high court Advocate
9615 Points
Posted on 13 December 2024
GST Registration and RCM If a company doesn't have a GST registration, it's still required to pay GST as a recipient under RCM for services that fall under the RCM scope.
RCM Scope RCM applies to specific services, including:
1. _Supply of services by an unregistered person_: If the supplier is not registered under GST, the recipient is liable to pay GST under RCM.
2. _Import of services_: RCM applies to the import of services, where the supplier is located outside India. GST Payment under RCM As a recipient, the company is required to:
1. _Pay GST on the value of services received_: The company must pay GST on the value of services received from the unregistered supplier.
2. _File GSTR-3B and GSTR-1_: The company must file GSTR-3B and GSTR-1 returns, reporting the GST paid under RCM.
Compliance Requirements To comply with GST regulations, the company should:
1. _Obtain a GST registration_: Although not mandatory, obtaining a GST registration can help the company comply with GST regulations and avoid potential penalties.
2. _Maintain records_: Keep accurate records of services received, GST paid under RCM, and returns filed. Please consult a tax professional or GST expert to ensure compliance with GST regulations and RCM requirements.