RCM on construction work

CA Akshay Hiregange (Partner - Audit & Assistance)   (3000 Points)

24 November 2021  

RCM is specifically applicable to the real estate sector.

So for Q1 - If from unregistered party there may not be RCM liability. Although, it is suggested to obtain declaration from vendors who are not charging GST that they are not required to do so. 

for Q2 - Not specifically against business promotion expense. Although sponsorship is liable under RCM. 9(3) list of expenses liable to RCM can be studied 

Useful article on RCM  from online - https://taxguru.in/goods-and-service-tax/reverse-charge-mechanism-section-94-gst-act-2017.H T M L