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REVERSE CHARGE MACHANISIM - SECURITY SERVICES

subrahmanyam (Sr.Accounts Officer) (59 Points)

12 May 2020

Hi,

We are Providing Security Services SAC Code 998525 which is applicable Reverse charge . so recipient has to pay tax under RCM basis.

but when we upload invoice in GSTR1 what is the taxable value and Invoice Value under RCM

Ex : Taxble Value is 100

Invoice Value is 100

Taxble Value 100

Invoice Value 118

Please clarify any One

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5 Replies

Nihit Somani (109 Points)
Replied 12 May 2020

Hello,

Since the security services are covered in RCM, GST will be paid by the recipient.

Now, as per rule 46, in the tax invoice, you need to show taxable value as 100 invoice value as 118 and check on the field where it says tax is payable on RCM basis.

In case supplier of security services is unregistered in GST, then recipient is required to issue tax invoice by himself as per section 31(3)(f).

Piyush Dabhi (12 Points)
Replied 12 May 2020

Show as follow in gstr1:
Taxable 100
Tax 18
Invoice 118
Tick rcm applicable check box also.

1 Like

CA Raghavendra Reddy M (40 Points)
Replied 12 May 2020

Disclosure in GSTR-1
B2B
TV-100
T-18
Inv V-118
Tick the option - Liable to RCM - Yes

B2C - FCM

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 12 May 2020

You taxable value & gross value will be same . ie 100/-

Just make sure that Option "RCM" shall mark on in table 4 of GSTR 1.

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 13 May 2020

Agree with Pankaj ji, taxable value and invoice value are to be Rs. 100 only. Not 118. In the invoice, Taxable value to be shown as 100, Tax rate as 18% and disclosure that recipient is required to pay under RCM under Section 9(3) read with Notification 13/2017-CT(R)

1 Like