The high court also revoked the cancellation of registration of the taxpayer on account of “non filing of Goods and Services Tax (GST) returns for 6 months. The court was hearing a writ petition .

“This case highlights the callous manner in which the assesses has been harassed by the respondents,” the court observed in the case.The indirect tax department had issued show cause notice to the assesses  for not filing GST returns. However, the tax department later accepted that the returns were filed and no dues were pending.“The show cause notice was completely vague and did not even point out as to what ground the reply was proposed to to be sought, the petitioner appeared and apprised that all the returns have already been filed,” the court observed.

The court also asked the tax officer to pay Rs 10,000. In view of the specific findings recorded above to the effect that the petitioner was unnecessarily harassed, the writ petition is allowed with a cost of Rs. 10,000/- to be paid to the petitioner within 30 days by the respondent no. 2 (tax officer) from his own salary,” the high court ruled.

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Reverse charging mechanism is a procedural way of discharging tax liabilities and formalities by buyer of services or goods or both instead of seller.The RCM adjustment entries are discussed below. For example, a transaction will be considered as reverse charge if tax is payable by buyer instead of seller. GST reverse charging provisions are covered under different sections and rules. Government has also released the list of services when received tax liability should be discharged by recipient instead of service provider. What are the provisions applicable to buyer or recipient in case of reverse charging? If you as a recipient of services or goods or both are liable to pay tax under reverse charge mechanism, you have to comply with all the provisions applicable under GST to a registered person. For example, following procedural as well as documentary functions are performed when a registered person makes a supply. a) Issue a tax invoice,b) Furnishing details in monthly returns,c) Calculating and remitting the tax liabilityd) Documenting the charging as well as payment cycles  Above are the general functions that a registered person has to perform to comply with law. When you pay under RCM, it becomes your obligations to comply with these rules.  For Accounting Purposes Different ledgers and Journal Entries are required for proper disclosure and recording of Reverse Charge amount in GST. 

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