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Is it IGST

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Rajkumar Gutti

880 Points Posted on 22 May 2023

our sales man use rental car .Service provider is unregistered & We , recipient , is registered and body corporate .
Salesman received service in karnatak & we recipient registered in west Bengal.
The said expenses is booked in our West Bengal books of accounts.

So we are liable to pay RCM.
Whether it is IGST or SGST +CGST
pl.guide

Replies (3)

Quick Summary

This discussion clarifies whether IGST or SGST+CGST applies to Reverse Charge Mechanism (RCM) when a registered body corporate in West Bengal receives rental car services used by a salesman in Karnataka from an unregistered provider. The consensus is that IGST is applicable because GST is a destination-based tax, levied where the service is consumed.

CS M Pota

Company Secreatary

3186 Points Posted on 22 May 2023

IGST because, the GST is a destination based tax, i.e., the goods/services will be taxed at the place where they are finally consumed and not at the origin.

So, the state where they are consumed will have the right to collect GST.