Save Rs 499. Go Ad-Free with CAclubindia Pro for 2 Full Years. Subscribe Now!

Reverse charge mechanism

Others 268 views 4 replies

Arjun Verma

133 Points Posted on 14 September 2020

Respected Seniors, Plz guide
i received a Invoice from a advocate for the legal service of amount 60000/- and the supplier is unregistered and we are registered and there is a note in supplier invoice for the tax payable under reverse charge mechanism. shall we paid the tax on reverse charge basis?? question no. 2:- plz let me know the proper records for the RCM service

Replies (4)

Shivam RC

Student

23693 Points Posted on 14 September 2020

Yes you have to discharge GST on Reverse Charge Mechanism ( RCM ) basis for Advocate Services since it is under RCM category vide Notification No. 13/2017 - Central Tax ( Rate ), dated 28th June 2017 read with Section 9(3) of the CGST Act 2017.

You have to raise a SELF INVOICE as per Section 31(3) clause (f) of the CGST Act 2017 and discharge the RCM liability by filing FORM GSTR-3B in "CASH". Also you will be able to claim ITC on the basis of Self Invoice raised as per Rule 36(1) clause (b) of the CGST Rules 2017, subject to payment of tax.

Regards,
Shivam RC.

Sagar Patel

Tax and Business Consultant

11616 Points Posted on 14 September 2020

Yes, Required to Pay GST under RCM as for legal services RCM is applicable.
You can take ITC of GST paid under RCM in your GSTR 3B return.
For record, you are required to prepare "self invoice", on basis of that you can claim ITC of GST RCM paid as mentioned above..