Is RCM applicable without levying GST in the invoice?

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Is RCM applicable without levying GST in the invoice?

My client is a GST registered service provider whose annual turnover is less than Rs. 20 lakh. They raise an invoice for services provided to another GST registered company without levying GST in the invoice? Can RCM be applicable for such an invoice and my client can file GSTR1 accordingly?

Profile photo of Prajakta Asked By: Prajakta 1 replies 0 helpful answers Last Updated: 2 months ago
  • Profile photo of PrajaktaPrajakta
    Participant

    My client is a GST registered service provider whose annual turnover is less than Rs. 20 lakh. They raise an invoice for services provided to another GST registered company without levying GST in the invoice? Can RCM be applicable for such an invoice and my client can file GSTR1 accordingly?

  • Profile photo of Ankita MathurAnkita Mathur
    Moderator

    Even though your turnover is less than 20 lakh but as you have voluntarily registered in GST ,it is mandatory to charge tax in your invoice. this is a compliance error and you should rectify the same along with the penalty, after  rectification you can  include this entry in GSTR-1

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