Q. 157 One of my known colleague has set up a Co in India .This Co acts as a mediator / Agent /Service Provider to different foreign Principals.They follow up with various Indian customers to place orders on the foreign Principals. The foreign Principals supply directly to the Indian Companies & get their payments. My colleague gets a Commision for the efforts put in . Pls confirm if he has to pay GST (reverse charge or in any other way)on the commission proceeds received ?

Ans. The above-mentioned services fall in “intermediary” and considering section 13(8)(b) of the IGST Act, 2017, the place of supply of intermediary services shall be the location of the supplier of services. Since, services of the intermediary are in taxable territory, therefore the above services are taxable under forward charge. However, this is a very subjective matter of litigation, you are required to take a detailed opinion.

Q. 156 Some invoices are not reflecting in GSTR-2B but are present in our books. Can we take ITC on those invoices ? If those invoices are of March 2022, and are showing in GSTR- 2B of April 2022, explain when can we take ITC on those invoices ?

Ans. In respect of rule 36(4), ITC cannot be claimed for the invoices which are not reflecting in GSTR-2B. Further, as per section 16(4), ITC on those invoices which are reflecting in succeeding months can be claimed before 30th November 2022 or furnishing of annual return, whichever is earlier.

Q. 155 Whether a firm of tax Practitioners and business consultants engaging in maintennance of books of accounts, preparing financial statements and filing returns are covered under the RCM list & if not whether ITC can be availed by client Example : XYZ ACCOUNTANTS & CONSULTANTS are a Prop. firm having valid GSTIN & ABC Constructions & Scrap Merchants are their client . the client pays a monthly 10,000 rupees ( excluding gst) , so, now the question arises whether the Accounting firm will collect 18% GST or the construction firm will pay GST under the RCM Further, if the accounting firm is the one to collect taxes from client , can the client claim ITC of the same ?

Ans. The above services are not covered under RCM and clients can proceed to claim ITC on the above services. However, it is assumed that it doesn’t not include any legal services provided by advocates or senior advocates.