Reverse Charge applicability of GST or Not

[shankar narayanan]

Vendor is from Mumbai (Un-registered service provider) since Vendor is falling below the threashold limit of ₹ 20L. Vendor issued invoice to his Noida customer towards supply of one manpower to his Noida Customer. As per invoice place of provision of service is Noida. As per invoice Service provider is Mumbai address and Service Recipient is Noida address

Query is whether Noida customer need to pay GST under reverse charge ? Please clarify

[KASTURI SETHI]

Security service is under RCM and not manpower supply. Both are different kinds of supply. Are you talking of security service ?

[shankar narayanan]

No. Security Services. I confirm that vendor not provided any security services. Vendor has provided recruitment services and charged in their invoice towards supply of manager (candidate) to Noida customer.

[KASTURI SETHI]

Noida customer is not required to pay IGST/CGST/SGST. See notification no.32/17- I.T.(Rate) dated 13.10.17 as amended vide 11/18- I.T.(Rate) dated 23.3.18 and 8/17-C.T.(Rate) as amended vide 22/18-CT(Rate). This is position as on today. In this context, Notification no.1/19-CT (effective from 1.2.19) has been issued. Exemption being withdrawn from 1.2.19.

[shankar narayanan]

Appreciate and Thanks for your quick response sir

AI Summary

Reverse charge applicability: manpower recruitment services to a recipient are not subject to reverse charge; exemption withdrawal changes position. Recruitment or manpower-supply from an unregistered supplier in one state to a recipient in another does not attract reverse charge in the present factual scenario because such supply is distinct from security services, which are under reverse charge; accordingly, the recipient was not required to pay GST under reverse charge pursuant to the notifications in force immediately prior to the subsequent notification that withdrew the exemption effective thereafter.