TaxTMI 
TaxTMI 
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?
Erroneous filing of RCM sales under Nil.
24 Sep 2025 
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Reverse charge mechanism: supplier not automatically liable if recipient pays RCM; obtain recipient declarations and documentary proof.
The supplier does not automatically become liable when RCM supplies were filed as nil if the supplier did not charge tax; liability under the Reverse Charge Mechanism remains with the recipient. Invoices stating recipient liability, LR copies, and customer declarations confirming payment under RCM constitute the primary documentary proof. Where an officer rejects the explanation, escalate to higher authorities and produce the assembled records to support the supplier's position. (AI Summary)
The supplier does not automatically become liable when RCM supplies were filed as nil if the supplier did not charge tax; liability under the Reverse Charge Mechanism remains with the recipient. Invoices stating recipient liability, LR copies, and customer declarations confirming payment under RCM constitute the primary documentary proof. Where an officer rejects the explanation, escalate to higher authorities and produce the assembled records to support the supplier's position. (AI Summary)