Page 12 - Ch3_RCM

CCP 03.03.14.00
State the person liable to pay GST in the following independent cases provided recipient is located in

the taxable territory:-
(a) Services supplied by a recovery agent to a car dealer. [ Study Mat]
(b) Security services (services provided by way of supply of security personnel) provided to a
registered person. [ Study Mat]

(c) Vivek Goyal, an independent director, appointed in accordance with the provisions of the
Companies Act, 2013, of A2Z Pvt. Ltd., has received sitting fee amounting to ₹ 1 lakh from A2Z
Pvt. Ltd for attending the Board meetings. Who is the person liable to pay tax in this case? [Study

Mat]
Answer:-
a) Legal Provision:-
As per section 9(3) of CGST Act, if services are supplied by a recovery agent to a banking company
or a financial institution or a non- banking financial company (NBFC) located in the taxable

territory, then GST is payable on reverse charge basis by recipient.
Discussion & Conclusion:-
Ü In the given case, services are being supplied by a recovery agent to a car dealer & not to a banking
company or financial institution or NBFC.

Ü Thus, service provider i.e. the recovery agent is liable to pay GST under forward charge.
b) Legal Provision:-
As per section 9(3) of CGST Act, if security services (services provided by way of supply of security
personnel) are provided by any person other than a body corporate to a registered person located

in the taxable territory, then GST is payable on reverse charge basis by recipient.
Discussion & Conclusion:-
Ü Therefore, in the given case, registered person receiving the services is liable to pay GST under
reverse charge.

c) Legal provision:
Ü As per section 9(3) of CGST Act, if services are provided by director to the company located in
taxable territory, then the company (recipient) is liable to pay tax under reverse charge

Conclusion:
Ü Therefore, in the given case, person liable to pay GST is the recipient of services, i.e., A2Z Pvt. Ltd.

CCP 03.03.15.00
In the following independent cases, decide, who is liable to pay GST, if any.

You may assume that recipient is located in the taxable territory. Ignore the aggregate turnover and
exemption available.
(I) 'Veer Transport', a registered Goods Transport Agency (GTA) paying IGST @ 12%, transported
goods by road of Dilip & Company, a sole proprietary firm (other than specified person) which is

not registered under GST or any other Law.
(ii)Mr. Kamal Jain, an unregistered famous author, received 20 lakh of consideration from PQR ₹
Publications Ltd. for supply of services by way of temporary transfer of a copyright covered under
section 13(1)(a) of the Copyright Act, 1957 relating to original literary works of his new book. [CA

Inter Nov 20 Exam]

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