One of my client is providing collection of service to Finance Co. and he has registered under GST . 18% GST is applicable for his service.
The finance co. is not paying GST to client, instead it paying GST directly under reverse charge system. (I think RCM is not applicable to registered supplier) now my question is how to show the supply made by client in GST return ?
Thanks in advance.
From comments what I understand is that, in this RCM is not applicable because collection agent is already registered under GST.
You need to talk with finance company and understand matter.
It does make any sense to pay GST on RCM basis. Reason may be that on finance company services there is no GST (no GST on interest), RCM is deferred till March, so they are trying to be smart to save GST cost.
You need to strictly talk to finance company, they have to pay GST in this case.
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