Reverse Charge

[Himanshu Agarwal]

I am service recipient and receive a service of fuel delivery(Petrol/Diesel) on my petrol pump from Service provider good transport agency. In which i received a invoice that RCM would be applicable and tax should be discharge by SR and liability of tax payment is on service recipient. But In GST Return of FY 2017-18 no tax is paid by SR on rcm and it is reflecting in GSTR-2A.

How can now SR can discharge the tax liability?
OK

[Yash Jain]

Sir,

The Service Recipient has to file GSTR 3B and show the amount of expenses on which he is liable to pay tax under RCM in “Inward Supplies liable to RCM”.

Sir, you will be able to claim ITC in the same month of which you will pay RCM.

For Reflection in GSTR 2A : Yes it will reflect, but only invoice and not the tax liability.

Comments from esteemed members is highly solicited.

AI Summary

Reverse charge: service recipient must report and pay RCM in GSTR 3B and may claim ITC when RCM is paid. A service recipient receiving fuel delivery services charged under reverse charge must report the expense under 'Inward Supplies liable to RCM' in GSTR 3B and pay the tax due; the SR may claim input tax credit in the same month when RCM is paid. GSTR 2A will show the supplier invoice but not the SR's RCM tax liability.