Service Tax Liability for June 2017

[MITSUI PRIME ADVANCED]

Dear Sir,

what will be effect if we are going to conclude the liability under RCM for the month of June 2017, in the Month of July 2017 ?

if paid in July 2017 , may be GST Rate applicable.

Arjun Sachdeva

Cell NO. 9251400801

[KASTURI SETHI]

Yes. GST Rate applicable.

AI Summary

Reverse Charge Mechanism: GST rate applies when RCM liability is discharged in a later tax period than accrued. Liability under the Reverse Charge Mechanism arising in one tax period but discharged in a subsequent period is subject to the GST rate applicable at the time of payment; where an RCM liability attributable to an earlier month is paid in a later month, the GST rate prevailing in the month of payment governs.