IGST RCM IN CASE OF SUPPLY BY GOVT AUTHORITY

[NUKALA KUMAR]

Telecom operator has received spectrum allotment from TRAI,for which he has paid spectrum fees to TRAI which attracts RCM in hands of recipient.

What is the place of supply?

Location of recepient( telecom operator) OR location of TRAI?

What is the tax to be paid in RCM ?

IGST - POS?? 

OR 

CGST AND SGST

[Sadanand Bulbule]

We need to decipher Section 12 of IGST Act, 2017

Section 12(2)(a): For B2B supply of services (where recipient is registered), the place of supply = location of the recipient of services. So, the place of supply is the telecom operator’s location (recipient’s registered place).

 Type of tax payable:  If supplier’s location (Govt/DoT) and place of supply (recipient’s location) are in the same State/UT ? CGST + SGST.  Otherwise, IGST will apply under RCM.

For details refer CBIC Circular No.222/16/2024-GST dated 26/06/2024.

AI Summary

Place of supply: recipient location; same-state supplies attract CGST and SGST, else IGST under RCM. Place of supply for B2B services paid to a government authority is the location of the recipient; if supplier and recipient share the same State/UT, CGST and SGST apply under reverse charge, otherwise IGST applies under reverse charge.