Availment of credit paid under RCM and FCM

[Nexdigm IDT]

I paid sponership fee to Governement organisation. They have charged GST on the invoice and I paid the same. Following are my queries:

1. Will I have to pay GST under RCM and avail credit of the same

2. Would I get credit of taxes paid to organistation

[KASTURI SETHI]

You can take ITC. You are not required to pay twice.

[KASTURI SETHI]

Sponsorship services are covered under RCM if provided to body corporate or partnership firm by any person.

[Ganeshan Kalyani]

Yes, sponsorship is covered under reverse charge mechanism. However , since the service provider has charged GST on the invoice you are required to pay GST again. One transaction is not subject to tax twice.

[Ganeshan Kalyani]

Sorry , typo error. Please read as "you are not required to pay tax again".

AI Summary

Reverse charge mechanism: recipient need not pay tax again and may claim input tax credit when supplier charges GST. Sponsorship services supplied to a body corporate or partnership fall under the reverse charge mechanism, but if the supplier has charged GST on the invoice the recipient need not pay tax again under reverse charge and may claim the tax paid as input tax credit, reflecting the principle that one transaction should not be taxed twice.