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Reverse charge

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Mebawansuk Nongkynrih

163 Points Posted on 20 January 2020

sir
can you help showing the steps how to file reverse charge like sitting fee, legal fee, etc in GST

Replies (5)

Quick Summary

This discussion explains how to handle the Goods and Services Tax (GST) reverse charge mechanism when you are the receiver of services, such as legal fees or sitting fees. It outlines that you must pay the GST under RCM at 18% and can claim Input Tax Credit (ITC) in the following month. The steps involve depositing the tax amount and reporting it as both a liability and an input in your GSTR 3B.

Anshuman Basu

account -GST

1560 Points Posted on 20 January 2020

Tell me you are service provider or recever

Mebawansuk Nongkynrih

163 Points Posted on 20 January 2020

Recever

Anshuman Basu

account -GST

1560 Points Posted on 20 January 2020

U should pay tax under RCM @ 18% and take ITC on the next month. In 3b u should put figure in inward column

Pankaj Rawat

GST Practitioner

55067 Points Posted on 21 January 2020

Let's suppose you paid 10000/- Legal fee.
Deposit 1800/- (18% of 10000/-) into cash ledger .

Report 1800/- in table 3.1(d) as liability & in table 4(A)(3) as input in GSTR 3B