Whether GST on RCM Liability is applicable on penalty deductions made from RA bills by R&B department or Municipal Corporations considering they are not liable for registration in consideration with changes vide Notification-14/2018-CT(R)?
Changes are as below:
(i) in the Table, -
(a) against serial number 4, in the entry in column (3), the words “Central Government, State Government, Union territory, local authority or” shall be omitted;
(b) against serial number 5, in the entry in column (3), the words “Central Government, State Government, Union territory, local authority or” shall be omitted;
Clarification Sought on GST Reverse Charge for Penalties in RA Bills After Notification-14/2018-CT(R) Amendments A query was raised regarding the applicability of Goods and Services Tax (GST) on Reverse Charge Mechanism (RCM) liability concerning penalty deductions from Running Account (RA) bills by the Roads and Buildings (R&B) department or Municipal Corporations. The question focused on whether these entities, not liable for registration, are affected by changes introduced in Notification-14/2018-CT(R). The changes involve omitting references to government entities in certain entries. Responses highlighted the importance of distinguishing between services supplied by and to government authorities, with specific attention to penalties imposed on contractors by local or governmental authorities. (AI Summary)
TaxTMI 
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TaxTMI 
