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Rcm applicable?

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job work service took ...raw material gave and finish goods rcvd...labour took gst reg of other state Maharashtra,but he is doing service in state of Karnataka.not registered in Karnataka .
bank address is also Karnataka,,
owner registered buisness entity is in Karnataka.,, transaction happened in Karnataka...rcm applicable?
Replies (1)

Based on the information provided, here's a summary: - Job work service provider (Labour) is registered in Maharashtra but provides services in Karnataka. - The service provider is not registered in Karnataka. - The bank account is in Karnataka. - The business entity is registered in Karnataka. - The transaction occurred in Karnataka. Regarding RCM (Reverse Charge Mechanism) applicability: - As the service provider (Labour) is not registered in Karnataka, RCM may be applicable. - Since the service recipient (you) is registered in Karnataka, you may be liable to pay GST under RCM. - However, please verify if the job work service provider has crossed the threshold limit for registration in Karnataka. To ensure compliance, consider: 1. Verifying the service provider's registration status in Karnataka. 2. Determining if RCM applies based on the service provider's registration status. 3. If RCM applies, pay GST on the reverse charge basis.


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