GST on Payments made to Collection Agent

[sumanta nayak]

Is RCM applicable to Payments made to daily collection agents of Banks?

AI Summary

GST Applicability on Payments to Daily Collection Agents Under RCM Discussed; Reference to Notification No. 13/2017-C.T. (Rate) Made A discussion on the applicability of the Goods and Services Tax (GST) under the Reverse Charge Mechanism (RCM) for payments made to daily collection agents of banks. Participants referenced Notification No. 13/2017-C.T. (Rate), indicating that services provided by recovery agents to banking or financial institutions are subject to GST under RCM. Clarification was sought on whether this applies to daily deposit collection agents, with opinions suggesting GST is payable under RCM, though distinctions were made between recovery and collection agents, suggesting the latter may be considered intermediary services. Further elaboration was requested for clarity.