Er. Nimesh asked 10 months ago
Rcm related question
I have a query regarding a transaction and would hereby request your assistance on the same.
Background
A transporter(Registered in Delhi) delivered goods to my workplace in West Bengal. I am an RTP of W/Bengal. I am liable to pay RCM u/s 9(3) against RCM.
Query
My query is, Will I have to pay IGST?
Or, SGST+CGST? Since I am receiving the service here in West Bengal itself.
Point of confusion
Since, the place o supply in this case will be West Bengal, and I shall be raising the self invoice, as per that logic, Recipient and supplier both are me (since self invoice) and PoS is also my own state, so can I Charge IGST on the same?
ConsultEase Administrator answered 10 months ago
If the transporter has not charged in forward charge, you are liable to pay in RCM. Here the PoS is your location and the place of the supplier is the supplier’s location. IGST will be charged. Raising a self invoice won’t change the supplier’s location.
Er. Nimesh
replied 10 months ago Firstly thanks a lot for taking the time to answer my query.
No otherwise, but would just like to express my point of view, with my limited understanding of the law.
Let me reproduce section 9(3) of the CGST act “…..paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if HE IS THE PERSON LIABLE FOR PAYING the tax in relation to the supply of such goods or services or both.” Now if I (the recipient) am liable for paying RCM, technically I will raise a self-invoice with the place of supply as West Bengal, and since I am raising the self-invoice (both supplier and Recipient being myself),
It is with this logic that I was of the view that C+S shall be charged.
Secondly, as a technical aspect, when I am paying RCM under IGST (In cases where the supplier has not filed his GSTR-1, for whatsoever reason), the govt, can never know which state shall get the credit of the IGST that I have paid. (since there’s no column in the return to disclosing PoS in the case of RCM).
These were the bases of my thoughts and have absolutely no intention of proving “right/wrong”. I have just expressed my view and would love a healthy discussion on the same.
ConsultEase Administrator answered 10 months ago
If the transporter has not charged in forward charge, you are liable to pay in RCM. Here the PoS is your location and the place of the supplier is the supplier’s location. IGST will be charged. Raising a self invoice won’t change the supplier’s location.
