how to deal with reverse charge if service recipient already registered ?

[RameshBabu Kari]

Dear Experts,

how to deal with reverse charge if service recipient already registered under GST.

In this case, can service provider can issue the invoice as normal without RCM if service recipient was already registered.

[Ganeshan Kalyani]

Section 9 (3) of CGST Act, 2017 provides a list of services for which the recipient of supply of service shall have to pay GST under reverse charge. The service provider providing those services is exempted from taking registration. They may surrender there registration.

Even if they are registered they are not suppose to collect and pay tax to the government.

[KASTURI SETHI]

I support the views of Sh.Ganeshan Kalyan Ji.

[DR.MARIAPPAN GOVINDARAJAN]

Service recipient, if he is liable to pay tax under reverse charge is to register with the Department. If he is a already registered person as a registered person he is not required to take another registration. He can add the reverse charge in his existing registration certificate by amending the registration certificate.

In the second case the service provider issues his bill to his recipient as a normal course collecting the prescribed rate of GST irrespective of the fact whether he is registered or not.

If the service provider is an unregistered person, then only the service recipient is liable to pay tax under reverse charge mechanism.

[Himansu Sekhar]

Give an example. Suppose GTA providing services to any individual, GTA will take reg and pay gst. If he provides the service to an regs person, the tax will not be paid by him.

AI Summary

Reverse charge mechanism: registered service recipients must account for tax on notified services rather than suppliers. Reverse charge requires the recipient of notified services to pay GST; suppliers of those services may be exempt from registration and are generally not to collect or remit tax. If the recipient is already registered, they use the existing registration (with amendment if needed) to account for reverse charge; when the supplier is unregistered the recipient is liable to pay under reverse charge. Forum answers note conflicting practical advice on whether a supplier may nonetheless issue a normal GST invoice, but maintain recipient liability under reverse charge.