ITC on GST paid under RCM without tax invoice

RCM 357 views 9 replies

Suppose ABC Limited has taken a service from XYZ Limited and this service is qualified under Reverse Charge. XYZ Limited has not provided any tax invoice to ABC Limited. Now the issue is:

i) ABC Limited has to discharge tax liability under RCM but it cannot taken ITC since tax invoice has not been issued by M/s XYZ Limited. This is a loss to M/s ABC since they might not be able to avail ITC even if they have discharged GST liability under RCM

 

ii) If M/s ABC opts not to discharge liability under RCM then will it be a non compliance for them

 

I request all experts to provide their valuable opinion in this matter.

Replies (9)
1) what type of RCM service, has been taken by the ABC LTD from XYZ Ltd .

2) Is XYZ registered under GST ?.

1) M/s ABC has taken building on rent from XYZ Limited for business purpose. Both are registered under GST.

Is it a Commercial property ?.

No residential property 

Why  XYZ  Ltd   not  issuing  TAX  invoice to  ABC  Ltd  ?. 

There is no reason as such.. Considering they will not issue tax invocie what can be done by ABC Ltd

1 ) If ABC Ltd has not discharging liability under RCM then , it is non-compliance for ABC Ltd , ( If rcm applicable to the company)

2) XYZ limited has to issue Tax-invoice , and mention in Tax-Invoice , that Tax is to be paid under RCM  ( only if RCM applicable )  , as per rule 46(p) of the CGST rules 2017 ( please refer) , so if XYZ Ltd is not doing so , then you Can contact to near by GST Department ( jurisdiction) and discuss with proper officer in Department regarding this matter. This is my Opinion.

3) Take more opinion on this.

Thanks a lot for your valuable opinion sir.. 

You are welcome.


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