GST RCM from URD

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140 Points Joined August 2017
We being registered in GST have received a bill from a URD person for POP Work at our factory premises.
Should we pay GST under RCM.
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On 29 July 2024 at 16:27 Report
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Master in Accounts & high court Advocate
9447 Points Joined December 2011

As a registered GST entity, you are required to pay GST under the Reverse Charge Mechanism (RCM) for services received from an unregistered person (URD) if the following conditions are met: 1. _Service provider is unregistered_: The service provider (in this case, the person providing POP work) is not registered under GST. 2. _Service is not exempt_: The service received (POP work) is not exempt from GST. 3. _Location of supply is within India_: The service is received at your factory premises, which is located within India. Since the service provider is unregistered, you, as the recipient, are liable to pay GST under RCM. You should: 1. _Raise a tax invoice_: Create a tax invoice for the services received, including the GST amount. 2. _Pay GST_: Pay the GST amount to the government using Form GSTR-3B. 3. _Claim input tax credit_: You can claim input tax credit for the GST paid under RCM, subject to the usual ITC rules. Please consult a tax professional or chartered accountant to ensure compliance with GST regulations and accurate calculation of GST liability.

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On 30 July 2024 at 16:28


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