QUESTION

a ) Reverse charge applies to sez unit who makes payment to security services (partnership firm). the securities firm has taken LUT. whether that since SEZ unit is not a taxable territory, is this ground can be taken for application of reverse charge. pl reply with provisions.

b) in 2018-19, payment of taxes has been made through DRC 03 , whereas not shown in the gstr 3b and gstr1 returns. To show where in annual Return  or in  FORM 9C. similarly in 2018-19 , payment of reversal of input credit has been mafe through DRC 03 as same as above. to show where in form 9 or 9C.

c) wherein a GTA has charged gst to my client, whether client needs to pay on reverse charge or not, pl clarify.

ANSWER

Point wise reply to your queries is as follows:

a) Supply of  goods /service to SEZ is export as per section 16 of the IGST Act.
Section 9 levies tax on reverse charge at the rate applicable to the supplier. Since it is zero rate at the hands of the supplier so no tax will be charged.

b) Payment of taxes has been made through DRC 03 is to be shown in Table 10 of GSTR-9C under Reasons for un-reconciled payment of amount.

Reversal of input tax credit through DRC 03  is to be shown in table 13 of GSTR-9C under Reasons for un-reconciled difference in ITC.

c) As per Notification No. 13/2017 Central tax (rate) RCM is applicable on Supply of Services by a goods transport agency (GTA) who has not paid central tax at the rate of 12% in respect of transportation of goods by road.
If GTA is charging and paying tax under forward charge mechanism @ 12% then there is no need to pay tax under reverse charge mechanism. (Reply dt.12.10.2020)