SIR am giving security services to 2 parties, one is agreed to pay GST under RCM, Another one is not agreed to pay GST Under RCM, wt to do sir??? shall I claim do one RCM and Another one FCM
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Quick Summary
This discussion addresses a query regarding the applicability of Reverse Charge Mechanism (RCM) for security services. The core issue is that one client agrees to GST under RCM, while another does not. The advice given highlights that the recipient's business constitution is crucial. If the recipient is a sole proprietor or firm (not a body corporate), they are liable for GST under RCM. However, if the recipient is a body corporate, they must pay GST under Forward Charge Mechanism (FCM). It's essential to consult relevant notifications for specific RCM applicability.
Your business constitution is important if you are other than body corporate( sole proprietor or firm) you should not pay GST the liability will be of the recipient of service, but if you are incorporated as body corporate you should pay GST under FCM only.
If RCM applicable as per notification , then he has to pay under RCM , So constitution of Business to whom your are providing services is important .so refer Notification .