Question ID :
40498
REVERSE CHARGE MECHANISM
Service provided by a lawyer to a company in July 2017. Bill and payment made in July 2017. Company registered in GST in December 2017. Turnover is over 2 crores. Is the company liable to RCM payment on advocate's fees paid in July 2017 ?
Posted by
ASHISH GOEL
on
Dec 06, 2019
Filed Under
GST
Yes, company has to pay GST on RCM, since it is company's fault for getting late GST Registaration.
Company has to pay the same with Interest.
Posted by
JYOTI BALUNI on
Dec 07, 2019
Answer ID :
80301
Sec. 24 of CGST Act, 2017, states that in case of receipt of any services which are liable under RCM u/s. 9(3) of the said Act, then the recipient of such service shall mandatorily obtain registration and discharge the liability under RCM irrespective of the turnover limit.
Hence, the company shall discharge the GST liability under RCM for the services provided by lawyer.
Posted by
Asiya Begum on
Dec 19, 2019