Reverse charge mechanism

-> For RCM, donâ??t only check whether the person is registered or not -> Main point is, the activities carried on by him must come within the definition of business, as business entity means any person carrying out business, because he can be unregistered due to threshold limit -> GST RCM u/s 9(3) is required when the specified inward supplies are to a business entity -> GST RCM u/s 9(4) is required by a person who is registered. So, here you donâ??t have to check whether business entity or not

Deepak Gupta

CA Inter

★ 1K+

17-Jan-21 21:07

Every business entity May not be a registered person.

Shiva Teja

Faculty

19-Jan-21 17:47

Sir if legal services are provided to a business entity,it is liable to gst under.without registration how can it pay gst

Thread Starter

Banda Veeresh

CA Inter

★ 35K+

19-Jan-21 17:59

As per Section 24(iii), persons who are required to pay tax under RCM shall mandatorily take registration in GST . Therefore, if legal services are not exempt and the recipient is a business entity located in the taxable territory then the recipient shall get himself registered in GST to pay tax under reverse charge.

Sudha Reddy

CA Final

★ 20K+

20-Jan-21 08:41