Gst reverse charges question when nil gst is applicable

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Gokul Kumar

Business

41 Points Posted on 09 September 2017

Hello CA Club!

Our B2B Customer has deducted GST reverse charges from our payment as we haven't obtained our GST number yet.

My question is: the GST applicable is nil, so how is it decided what amount is deducted?

For those looking for further details, the situation is to do with the sale of rooms in a guesthouse. The tariff is under Rs. 1,000, which is why GST is Nil. However, it seems that the customer has deducted 12% from our payment claiming it is for reverse charges. Is that in compliance with GST rules, to deduct 12%?

I know that we should have gotten the number by now. That is our fault. Is the customer liable to provide us with any proof that this amount has indeed been paid to GST?

Thanks for the help!

Replies (4)

Gokul Kumar

Business

41 Points Posted on 09 September 2017

I can't see this post in the sub forum. I'm just replying to see if it appears or not.

imtiyaz alam

46 Points Posted on 09 September 2017

RC applicale on buyers not sellers so that a buyer can take input through RCM

Gokul Kumar

Business

41 Points Posted on 09 September 2017

Originally posted by : imtiyaz alam
	RC applicale on buyers not sellers so that a buyer can take input through RCM

Hi, could you elaborate on this?

If the GST applicable is nil why did the buyer deduct GST reverse charges?

In addition, the invoices where GST was deducted by buyer were for the months of July and August. I have heard that the deadlines for GST filing keep getting extended. Is is possible for us to file GST for July and September?