GST
DRC-01A for unpaid reverse charge
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Facts
Services such as legal services by an advocate and goods transport by a GTA (where notified) attract reverse charge under Sec 9(3). The buyer pays the tax. Missed RCM is a common demand ground.
Provisions and law
- Sec 9(3), CGST Act 2017Tax on notified supplies paid by the recipient under reverse charge
- Rule 142(2A), CGST Rules 2017After DRC-01A, the person may pay in full or part through DRC-03 or file submissions in Part B
Analysis
If the RCM was missed, pay the tax with interest through DRC-03. The tax paid can usually be claimed as ITC, so the real cost is the interest. If a GTA charged forward GST, explain that RCM did not apply.
Conclusion
- List advocate and transport expenses for the period.
- Check which attract RCM.
- Pay missed RCM with interest through DRC-03.
- Claim ITC where allowed and reply in Part B.
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