Service provider not paid GST details

[Shambhavi Nayak]

One of the client has received service of Fabrication work from a Gujarat GST holder during 25-26.

He has raised invoice for Rs 27 lakhs + IGST @18%.

He has not filled GST returns. Hence we have stopped his payment equal to IGST amount. Can we pay the amount under RCM and take inputs.

 

[Suresh Yadav]

NO.

RCM payment can only be done for services comes under Section 9(3) of CGST Act read with NOTIFICATION NO. 13/2017-CENTRAL TAX (RATE) dated 28.06.2017

AI Summary

Reverse charge mechanism and input tax credit questions arise when a supplier invoices IGST but does not file GST returns. Service tax/GST compliance issue concerning payment for fabrication work received from a Gujarat-registered supplier who issued an invoice charging IGST but allegedly did not file GST returns. The recipient states that payment has been withheld to the extent of the IGST amount and seeks clarification on whether the liability can instead be discharged under reverse charge mechanism and whether input tax credit can be availed in such circumstances.