Reverse Charge Mechanism

RCM 150 views 2 replies

Mitesh Bilakhia

1 Points Joined June 2017

The vendor has provided services which are registered under RCM. But while issuing invoice, vendor has charged GST. We paid the entire invoice as it was difficult to convince him to change the invoice. Does this make me liable to again pay under RCM, or since he has charged and I have paid it, does it matter, as government has received tax on the supply of services.

Replies (2)

Manindra Nath

6 Points Joined July 2017

In the broader sense it is correct that tax has been paid on GTA and further payment by you will become suffering of double taxation, but this reply can be heard only before judicial forum. As the matching of Invoice for tax credit is through Network so the said credit of tax will not find the place in matching. The recipient of supply is also to issue an invoice against tax paid by him on behalf of GTA. Either you convince the GTA to reflect only freight charge in his bill or change the transporter.

Vageesh Tavarad

Accountant

140 Points Joined May 2017

Respected Sir

My Clients do Chilli Business ..While sending the goods from his place to buyer place he will pay part or full frieght which is supposed to be paid by the Buyer ..Nowsince my client has paid that amout to lorry driver he mentions it in invoice in order to proper accounting

My question is do we need to pay GST for this Amout also?

Pleae clarify Sir