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Reverse charge : service provider has charged gst on bill

RCM 194 views 3 replies

Assam CA

credit manager

39 Points Joined November 2014

Service provider falling under reverse charge ( Sponsorship/GTA/Recovery Agent) has charged GST on their bill. What should the service recipient do ?

a) Pay bill amount including GST and abstain from paying GST under reverse charge?

b) Pay bill amount excluding GST and pay GST under reverse charge instead?

Under GST laws is the liability of paying GST under reverse charge absolute?

Replies (3)

RCM liability has to be discharged by receiver. He/she can't argue that as the supplier has charges GST so they need not to pay on RCM basis. reason is this kind of exception has not been provided in GST till now. in your case if you are liable to pay GST on RCM basis then inform to your supplier to rectify his invoice.

Vipul Acharya

Account Officer

652 Points Joined June 2013

But we already made the payment including GST and there is no way to recover, courier agency refused to revise the bill telling they are working in the manner for all customers.

What to do