TMI BlogReverse Charge MechanismX X X X Extracts X X X X X X X X Extracts X X X X ..... 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 liability 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. M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompulsory 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 more light on the constitution of society. - Reply By THYAGARAJAN KALYANASUNDARAM - The Reply = Dear sir, The society undertook the only charitable activity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice 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 department. In the subject query, service receiver is non-business entity. Hence RCM not applicable. There are different definitions of & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;charitable' in the Income Tax Act and CGST Act . - Reverse Charge Mechanism - Query Started By: - THYAGARAJAN KALYANASUNDARAM Dated:- 13-8-2021 Goods and Services Tax - GST - Got 6 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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