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Responsible for Gst invoice

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Ravi Saini

35 Points Posted on 22 January 2022

I have paid 40 lac payment to a person for labour charges in a financial year. person has not gst no we have payments towards to them.(according to gst rules above 20 lac buisness by a person mandatory Gst No ). but on date we have do not received any invoice and also we do not deposit RCM on that payment ( 40 lac).

Is we are responsible for this or not?
. if we responsible which section will be apply on us.

Replies (4)

Quick Summary

This discussion clarifies GST responsibilities when paying labour charges without a GST number. The user paid £40 lac in labour charges to an individual who should have registered for GST but didn't. The core question is whether the payer is liable for Reverse Charge Mechanism (RCM) or any other GST implications. The consensus is that the payer is not liable for RCM on these labour charges, as the responsibility to register and issue invoices lies with the service provider. Notification 13/2017 is referenced as a key guideline.

sabyasachi mukherjee

Profession

19978 Points Posted on 22 January 2022

Apply for gst registration.
contactat @ icmai.easyaccountingaudittax.co.in

CA Puja Sharma

Chartered Accountant

3528 Points Posted on 22 January 2022

No, you are not liable for RCM payment against the labour charges.

Ravi Saini

35 Points Posted on 22 January 2022

Which section

CA Altamush Zafar

GST Consultant

10402 Points Posted on 23 January 2022

There is no RCM on this transaction. Refer notification 13/2017. Also the liability to take registration and issue invoice is on the person providing/supplying services