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Reverse charge section 9(3)

Shivani (Learner) (1881 Points)

19 January 2018

Dear Members

X, an advocate registered under GST provided services to ABC Limited, registered under GST.

Now this service is subject to reverse charge being a notified service under section 9(3).

my question is

1) when advocate issue invoice to ABC Limited, will he show CGST/SGST in his tax invoice.

2) what will ABC Limited show in the self invoice it will issue as per section 31(3)(f).

regards

shivani

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5 Replies

preeta prakash (32 Points)
Replied 29 January 2018

advocate will definitely issue invoice. however he will not levy any gst on it.

abc will raise an invoice and charge gst under rcm and pay the same

1 Like

Vamshi Krishna Javvaji (CA) (410 Points)
Replied 29 January 2018

Dear Shivani,

Advocate issues invoice to ABC Ltd, shows the applicable GST and specifies that the recipient shall be liable to pay tax under RCM. Reference Rule 46(p) of CGST rules.

Since the advocate is registered and issues tax invoice, the ABC Ltd, need not issue any invoices.

Sec 31(3)(f) is applicable only if the supplier is an Unregistered person.

Regards,

CA Vamshi Krishna

Shivani (Learner) (1881 Points)
Replied 30 January 2018

@ Vamshi

(f) a registered person who is liable to pay tax under sub-section (3) or
sub-section (4) of section 9 shall issue an invoice in respect of goods or services or
both received by him from the supplier who is not registered on the date of receipt of
goods or services or both;

So section 31(3(f) is applicable even if supplier is registered as section 31(3(f) covers reverse charge under section 9(3).

regards

Vamshi Krishna Javvaji (CA) (410 Points)
Replied 30 January 2018

f) a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both;

Kindly read the same again. Invoice is required only if the supplies are received from an unregistered person.