TaxTMI 
TaxTMI 
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?
GST under reverse charge by HO
20 Jul 2019 
8 Replies 
1268 Views Asked by
Reverse charge mechanism: Head office must register and pay GST under RCM; ISD credit limited to consuming unit.
The establishment receiving the service and liable under the reverse charge must obtain registration and pay the tax; a head office that receives the service and is the place of supply must register and cannot have the principal place of business discharge that reverse charge. Separate registration as an Input Service Distributor is required to distribute credits; only services common to multiple units may be distributed, whereas services exclusively consumed by one unit cannot be allocated to others. (AI Summary)
The establishment receiving the service and liable under the reverse charge must obtain registration and pay the tax; a head office that receives the service and is the place of supply must register and cannot have the principal place of business discharge that reverse charge. Separate registration as an Input Service Distributor is required to distribute credits; only services common to multiple units may be distributed, whereas services exclusively consumed by one unit cannot be allocated to others. (AI Summary)