Reverse charge on services

[Bharat Cholleti]

Dealer exclusively deals in above 25kg prepackaged and labeled goods Viz., Rice on which GST is exempted by a circular by CBIC , such dealers receive some services like GTA,residential dwelling to a regd person, advocate fee does they liable to pay Reverse charge though the main commodity is exempt? general rule when dealing in exempt supplies RCM will not be applicable, please clarify sir.

AI Summary

Dealer Must Register for GST Under Section 24 for Legal Services, RCM Applies to Other Services Once Registered. A dealer dealing exclusively in exempted goods like prepackaged rice inquires about their liability to pay GST under Reverse Charge Mechanism (RCM) for services such as goods transport, residential renting, and legal fees. One expert states that registration is required under Section 24 even if the main supply is exempt. Another expert agrees, clarifying that GST exemption applies to goods transport services for rice, and registration is not needed solely for receiving these services. However, legal services necessitate compulsory registration and tax payment under RCM. Once registered, RCM applies to other services like residential renting.