Erroneous filing of RCM sales under Nil.

[Veena Nair]

If the transportation service was filed under Nil instead of RCM by the service provider, but LR copies for all the bills have been issued along with invoices. Would the service provider then become liable?

[Sadanand Bulbule]

The service provider does NOT automatically become liable, if GST return was fillef as NIL instead of under RCM, as long as he did not charge GST to the recipient.

 Under such situation, the recipient is responsible for GST under RCM , and LR copies only support proof of service.

[Veena Nair]

Hello Sir, thank you for replying to my query. I have explained to the GST officer that :

1. our service of transportation  falls under  RCM

2. I have showed him our invoices which state that tax is to be paid by the recipient on transportation, the LR copies, the declarations from customers who have accepted their responsibility under RCM and paid the tax as well.

3.  we have written up our entire explanation along with a similar case study.

But the officer has adamantly refused to even read our response, instead claims that our findings and explanations are not acceptable. And that he believes that we are trying to evade tax by wrongly filing the RCM sales. 

I am unable to convince the officer to accept my response. Could you please suggest a way to get through to the officer? 

[KASTURI SETHI]

It is a  typographical error. I concur with the views of Sh.Sadanand Bulbule, Sir.

[Veena Nair]

Hello Sir, thank you for replying to my query.  I wish to have your advice on this matter as well. Is there any rule under which the officer can prove that this liability is not discharged or that it is to be shifted on service provider, due to the error of filing.

[Sadanand Bulbule]

Madam

This is common trend in the department because of ego factor. No authority likes to accept the truth easily. Better to approach the higher authorities to convice your merits and trim the adamant nature of that particular officer.

This is how the slogan of "ease of doing business" dies.

[Veena Nair]

Thank you again Sir for responding to my query and your valuable advice.

[Shilpi Jain]

You can consider to get declarations from your customers that they have paid GST under RCM on the transportation services availed by them from you.

This you can produce to the officer.

[Shilpi Jain]

By doing the above, if not at this stage, at least in the later stages of litigation you are sure to get a relief

AI Summary

Transporter mistake: recipient paid GST under reverse charge; supplier must keep invoices, LR, declarations, proof per Section 9(3) CGST A transporter mistakenly reported supplies as nil instead of under reverse charge; invoices and LR (consignment) receipts show tax payable by the recipient and recipients have paid GST under RCM. Legally the recipient, not the supplier, bears RCM liability if the supplier did not charge tax. The supplier should collate invoices, LR copies, customer declarations and proof of recipients' RCM payments, present these to supervisory authorities or in appeal, and preserve records to defend against assessments or allegations of tax evasion.