🇮🇳India

परामर्शी वेतन पर GST RCM अनुपालन विफलता

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Definition

Consultant payouts in executive search qualify as 'staffing' under GST RCM at 18%, requiring self-invoicing and GSTR-3B payment. Failure blocks ITC matching in GSTR-2B.

Key Findings

  • Financial Impact: 18% GST on commissions (₹2-5 lakhs/year) + ₹10,000/lakh penalty; full ITC loss
  • Frequency: Quarterly GSTR-3B filings
  • Root Cause: Unawareness of RCM on pure commission vs. staffing classification

Why This Matters

The Pitch: Executive Search firms in India lose ₹1-3 lakhs ITC annually due to RCM oversight. Automation flags RCM liability on commissions.

Affected Stakeholders

Accounts Payable, Compliance Officer, MD/Partner

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Related Business Risks

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