Q.122 Please clarify and whether RCM is applicable on mandatory / statutory required services charges paid to govt. like factory fees, DGFT fees, pollution department fee etc. Please clarify RCM on bank guarantee given by the director ?

Ans. This is a very subjective matter of litigation As per notification no. 13/2017- CT (R ), services supplied by the central government, state government, union territory or local authority to a business entity would be covered under reverse charge mechanism except a few services. However, services provided by the government under article 243 W and 243 G are exempt. Therefore, it is required to check each service fee paid by your w.r.t criteria mentioned above. In general, if the bank guarantee given by the director is not in the course or terms of employment then tax under GST has to be discharged through RCM. It is also advised to take a detailed opinion to have better clarity.

Q. 121 Is Gst on Rent under Rcm need to be paid if 2022-23 Rent paid in April 2022 itself pls guide ?

Ans. In the above case, the provisions under section 14 of the CGST Act to be applicable, accordingly different case scenarios need to be evaluated.

Q. 120 One of gst registered regular scheme itc claim notice received from gst department previous years 18-19 year short fall itc claim with gstr3b vs gstr2ars:2 lacs 19-20 year excess itc claim Rs:3 lacs 20-21 year excess itc claim rs:1.50 lacs 21-22year itc excess claim rs:1 lacs notice mentioned.if dealer itc claim orginal invoice based input show in gstr3b return filed every month.excesd itc claim reason some selling registered dealer invoice not uploaded in gstr1. Question: Dealer notice mentioned amount tax pay compulsory ?

Ans. In the above case,

Please prepare a year wise reconciliation on the basis of above information and invoices not uploaded in GSTR-1 to be ascertained in the next period returns. Moreover,  excess ITC has to be reversed along with interest payment.