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RCM supply, Goods and Services Tax - GST

Issue Id: - 116887
Dated: 3-12-2020
RCM supply

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sir there are two terms used under RCM applicable for services and they often create little confusion. " Any business entity located in the taxable territory", "A registered person, located in the taxable territory". what do these two terms indicate! why they are interchangeably used!

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1 Dated: 4-12-2020

Both terms indicate as under:-

"Any business entity located in the taxable territory",

Not only for the purpose of RCM otherwise also two conditions should be qualified : The supply should be in the course or furtherance of business and it should be in taxable territory. If the supply is made from 'B' to 'C' RCM will not be applicable and tax will be paid under FCM. There are other examples also ; if supply is made to Govt., RCM is not applicable as supply to Govt. is not B to B. The condition of 'taxable territory' is common for all kinds of supplies for levy of GST.

"A registered person, located in the taxable territory".

It is very much clear that any person registered with GST department is a business entity and also falls in a taxable territory. Here for the purpose of RCM, a registered may be Proprietorship, Individual, Pvt. Ltd., HUF etc.

Regarding the usage of these terms interchangeably, it depends upon specific conditions laid down in a notification for the purpose of levy of GST under RCM..

2 Dated: 5-12-2020
By:- Ganeshan Kalyani

I agree with the views of Sri Kasturi Sir.


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