QUESTION

I, J. VIJAYA KUMAR, Membership No. 10044, would like to ask the following question. ` IF A SERVICE PROVIDER FAILS TO PAY THE GST AMOUNT TO THE DEPARTMENT THEN, CAN THE SERVICE RECEIVER PAY THE DUES WITHOUT USING GST LOGIN OF SERVICE PROVIDER IN GST PORTAL?

ANSWER

Facts of the case:
Service provider fails to pay the GST amount, Service receiver want to pay dues on behalf of service provider.

Law Applicable:
SECTION 9 OF CGST ACT
(1) Subject to the provisions of sub-section (2), there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cent., as  may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person.

(3) The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.

Interpretation:
Section 9 of CGST Act specifies the person liable to pay tax. Service receiver is liable to pay tax on services specified by Notification, otherwise the liability to collect and pay tax is on supplier.

Thus if service recipient pays tax on behalf of service provider then it will not effect or reduce the liability of service provider to pay tax.

Conclusion:
Payment of tax by service recipient on behalf of service provider will not reduce the liability of service provider.