GST RCM on service received from EPF consultant

RCM 167 views 1 replies

I have some doubt on GST RCM.

Can a GST registered company will file RCM on service receiving from EPF consultant (who is an individual and doesn't have GST number)?

I have checked GST RCM guide PDF, there is only written for Advocate service.

Please guide.

 

 

Replies (1)

Hi Soumyaranjan,

Good question about RCM on services from an EPF consultant who is an individual without GST registration.

Here’s the GST position on this:

  1. RCM Applicability on Services from Unregistered Individuals:

    • Under GST law, RCM applies on specific categories of services received from unregistered suppliers.

    • Common categories include legal services (advocates), services by arbitral tribunals, sponsorship services, etc.

    • Services like consultancy, advisory, or professional services from unregistered individuals are generally NOT subject to RCM unless specifically notified.

    • The EPF consultant’s service is advisory/consulting related, but not in the notified categories attracting RCM.

  2. Is EPF consultant service covered under RCM?

    • No, as per the GST RCM notifications, services from unregistered individuals such as EPF consultants are not liable for RCM.

    • RCM generally applies when services come from registered or unregistered suppliers for specific notified services only.

  3. What if the EPF consultant is not registered under GST?

    • If the consultant’s turnover is below GST registration limit, and they do not have GST registration, no GST is charged on invoice.

    • You as the recipient do not have to pay GST under RCM for such services.

  4. Reference:

    • Notification No. 13/2017-Central Tax (Rate) and related GST RCM provisions specify services liable to RCM.

    • Advocate/legal services, sponsorship, services from director, etc., are included but consulting services like EPF consultant services are not included.


Summary for you:

Question Answer
Is RCM applicable on EPF consultant (unregistered)? No
Should company pay GST under RCM on such services? No
Does EPF consultant need GST registration? Only if turnover crosses threshold


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register