PLACE FOR RCM

[SAFETAB LIFESCIENCE]

Dear Experts,

We have participated an event for business promotion at Maharastra (27). Our GST registration is in Puducherry(34) only. They provided stall for us.

The Service provider has raised GST bill without GST and informed us, we(STATE 34), have to pay GST under RCM and take credit of ITC.

His Bill says,

1. Description of Services - Sponsorship Services & Brand Promotion Service

2. Nature of Service - Session Partner

3. SAC - 998397

4. Place of Supply - Puducherry (34)

5. Location of the Event - Maharastra (27)

Now, we (State 34) are going to pay GST under RCM and take credit of ITC.

Whether we have to pay IGST 18% or CGST 9% + SGST 9%

Please clarify immediately by any one. Tomorrow, we have to pay Tax

AI Summary

Business Must Pay 18% IGST Under Reverse Charge Mechanism for Interstate Sponsorship Services, Claims Input Tax Credit A business from Puducherry participated in a promotional event in Maharashtra and received a GST bill without GST charges. The service provider stated that the business must pay GST under the Reverse Charge Mechanism (RCM) and claim Input Tax Credit (ITC). The services involved were sponsorship and brand promotion, with the place of supply being Puducherry. The business sought clarification on whether to pay IGST at 18% or CGST and SGST at 9% each. An expert clarified that since it is an interstate supply, IGST is payable under RCM at the Puducherry location.