Dear Experts,
I am providing legal services to a society where they provide only a trust-based activity. Now as per sec 9(3) of CGST/SGST Act, the receiver who receive the legal services should discharge the tax liability to the government exchequer. In this case, the society does not have any taxable sales / services for consideration and they don't have the GST registration also.
My query is how the gst will be discharged by the client. Please explain to me with a suitable notification with an explanation.
Thanks in Advance.
Reverse Charge Mechanism Under GST Not Applicable to Non-Business Charitable Societies Without GST Registration A legal service provider inquired about the applicability of the reverse charge mechanism (RCM) under the Goods and Services Tax (GST) for services rendered to a society engaged solely in charitable activities and lacking GST registration. Experts responded that if the society is not a business entity, RCM does not apply, and the service provider can use the threshold exemption. It was advised that the society should consider GST registration, as certain circumstances require compulsory registration. The discussion highlighted the distinction between charitable entities under the Income Tax Act and the CGST Act. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
