GST under reverse charge by HO

[Kaustubh Karandikar]

XYZ registered with GST for principal place of business at Aurangabad and Head office at Mumbai as additional place of business. Head office also registered as “ISD”. Head Office receiving security services from a proprietor and therefore liable to pay GST on it under reverse charge. Can the principal place of business at Aurangabad pay GST on it under reverse charge or Head office is required to take a separate registration? If Aurangabad pay the GST under reverse charge how can head office distribute the credit to all the locations of XYZ?

AI Summary

Head Office Must Register for GST Under Reverse Charge; Cannot Distribute Input Tax Credit Without Common Services A discussion on a forum revolves around a query about Goods and Services Tax (GST) under reverse charge. A company with its head office in Mumbai and principal place of business in Aurangabad is receiving security services and needs to pay GST under reverse charge. The main question is whether the Aurangabad office can pay the GST or if the head office requires separate registration. Responses highlight that the head office must register for reverse charge mechanism (RCM) and cannot act as an Input Service Distributor (ISD) without registration. It is clarified that only the head office is liable to pay the tax, and the input tax credit cannot be distributed to other units unless the services are common to all.