GST under RCM for Court Fee paid - APplicable or Not payable/applicable

[venkataraman swaminathan]

Dear Sir

In connection with Amalgamation activity , the Court Approinted one Liquidator and

expecting Orders from the Court for amalgamation activity. In this connection we need to pay some amount to the Court as per the Court Letter , & inturn court will pay to the Liquidator as fee. For our Payment by DD court will give receipt .

In this transaction , for our payment of the money paid to Court , fall under RCM or not

GST under RCM is payable or not payable. We need Guidance on this please.

Thanking you

V Swaminathan

AI Summary

GST Reverse Charge Applies to Liquidator Fees in Amalgamation; ITC Claimable Under Schedule III of CGST Act. A query was raised regarding the applicability of Goods and Services Tax (GST) under the Reverse Charge Mechanism (RCM) for fees paid to a court-appointed liquidator during an amalgamation process. It was clarified that according to Schedule III of the CGST Act, services by a court are neither a supply of goods nor services, thus generally not subject to GST. However, if the court's letter specifies that the payment is for the liquidator's fees, GST under RCM is applicable. Input Tax Credit (ITC) can be claimed for GST paid under RCM. The liquidator, not the payer, is responsible for GST on the fee received.