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

Reverse charge liability applies where court-collected payments constitute liquidator fees, obliging payer or recipient to discharge GST and may permit ITC.
Where a court merely collects amounts that are in substance fees payable to a liquidator, those amounts constitute consideration for the liquidator's services; the liquidator must treat such fees as taxable output and discharge GST, while the payer may be required to discharge GST under reverse charge if applicable and may claim input tax credit if otherwise eligible, though revenue may argue any tax paid should be reclaimed as refund if the transaction is characterized as court services excluded under Schedule III.