RCM APPLICABILITY ON PENALTY DEDUCTION IN THE CASE OF GOVT. CONT., Goods and Services Tax - GST

[KUNAL DESAI]

Whether GST on RCM Liability is applicable on penalty deductions made from RA bills by R&B department or Municipal Corporations considering they are not liable for registration in consideration with changes vide Notification-14/2018-CT(R)?

Changes are as below:

(i) in the Table, -

(a) against serial number 4, in the entry in column (3), the words “Central Government, State Government, Union territory, local authority or” shall be omitted;

(b) against serial number 5, in the entry in column (3), the words “Central Government, State Government, Union territory, local authority or” shall be omitted;

Posts / Replies

[KASTURI SETHI]

Concentrate on Services supplied 'BY Govt. authority' and 'TO Govt. Authority'. Line has to be drawn to go ahead in this matter.

[KUNAL DESAI]

Kasturji,

In my present facts, services are provided by Local Authority & Governmental Authority indirectly by way of deducting penalty on completion of contracts belatedly by contractor.