What is the GST rate under RCM?
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What is the GST rate under RCM?
(i) where the supplier of the service charges GST @ 12\% from the service recipient, the service recipient shall not be liable to pay GST under RCM; and, (ii) where the supplier of the service doesn’t charge GST @ 12\% from the service recipient, the service recipient shall be liable to pay GST under RCM.
How is interest calculated on ITC reversal?
In other cases interest will be paid @18\% p.a. u/s 50 (1). Interest @18\% to be calculated at the time of reversal of input credit as per section 16(2) ITC availed earlier to the extent of the amount not paid shall be reversed and added to tax liability under the current liabilities of the Balance Sheet.
Which services comes under reverse charge mechanism in GST?
SERVICES UNDER REVERSE CHARGE AS APPROVED BY GST COUNCIL
| Sl. No. | Provider of service | Percentage of service tax payable by service provider |
|---|---|---|
| 1 | Any person who is located in a nontaxable territory | Nil |
| 2 | Goods Transport Agency (GTA) | Nil |
| 3 | An individual advocate or firm of advocates | Nil |
| 4 | An arbitral tribunal | Nil |
How does reverse charge mechanism work?
Reverse charge is a mechanism under which the recipient of the goods or services is liable to pay the tax instead of the provider of the goods and services. But under reverse charge mechanism (RCM), liability to pay tax shifts from supplier to recipient.
How do I reverse tax in GST?
If a registered person who has availed input tax credit on any inward supply of goods or services or both, but fails to pay the supplier within a period of 180 days, then ITC availed is to be reversed. If part of the invoice is paid then ITC will be reversed on a proportionate basis.
How can I reverse my ITC in GST return?
As per Rule 37, all registered persons should reverse the ITC claimed on inward supplies for which he has failed to pay consideration to the supplier within 180 days from the date of issue of the invoice. Such reversals should be reported here. Rule 39 states the procedure for distribution of ITC by ISD.
Is reverse charge applicable on advocate services?
Advocates has privilege of not to pay GST on their output supply, while the tax on their supplies has to be paid by recipient under Reverse Charge Mechanism (RCM).
How many tax rates are there under GST?
In India GST rate for various goods and services is divided into four slabs: they are 5\% GST, 12\% GST, 18\% GST, & 28\% GST. The GST rates for various products have been revised several times by the GST council since the inception of the Goods and Services Tax (GST).
Is security services under RCM in GST?
From 1st January 2019, any registered person receiving security services from any person other than a body corporate is required to pay GST on a reverse charge basis.