TaxTMI 
TaxTMI 
Reverse Charge Mechanism
X X X X Extracts X X X X
X X X X Extracts X X X X
....everse Charge Mechanism<br> Query (Issue) Started By: - THYAGARAJAN KALYANASUNDARAM Dated:- 13-8-2021 Last Reply Date:- 15-8-2021 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>Dear Experts, I am providing legal services to a society where they provide only a trust-based activity. Now as per sec 9(3) of CGST/SGST Act, the receiver who receive the legal services should discharge the tax l....
X X X X Extracts X X X X
X X X X Extracts X X X X
....iability to the government exchequer. In this case, the society does not have any taxable sales / services for consideration and they don't have the GST registration also. My query is how the gst will be discharged by the client. Please explain to me with a suitable notification with an explanation. Thanks in Advance. Reply By ARVIND JAIN: The Reply: As per Sec-24. Compulsory registration ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in certain cases- (iii) persons who are required to pay tax under reverse charge; So Simple take registration in the case of the Trust and Pay as it comes under the compulsory registration category. Reply By KASTURI SETHI: The Reply: Legal services provided to a business entity are covered under RCM. Here the question arises whether the society in question is charitable trust or not ? Throw mor....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e light on the constitution of society. Reply By THYAGARAJAN KALYANASUNDARAM: The Reply: Dear sir, The society undertook the only charitable activity and registered one. Thanks in advance. Reply By KASTURI SETHI: The Reply: If service receiver (Trust) is not a business entity, RCM is not applicable. FCM is applicable and Service Provider will avail threshold exemption. Also see Serial No.45 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of Notification No.12/2017 CT (R) dated 28.6.17 as amended. Reply By JACOB KORA: The Reply: Please confirm whether RCM is applicable on service received from an advocate to a society/Trust which is registered under GST. Reply By KASTURI SETHI: The Reply: It is not necessary that registered person is a business entity. There are so many factors for a person who gets registered with the GST depa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rtment. In the subject query, service receiver is non-business entity. Hence RCM not applicable. There are different definitions of 'charitable' in the Income Tax Act and CGST Act.<br> Discussion Forum - Knowledge Sharing ....