🇮🇳India

रिवर्स चार्ज मैकेनिज्म (RCM) गलत आवेदन और देरी

2 verified sources

Definition

When event management companies use unregistered suppliers (GSTIN not available or supplier below ₹40 lakh threshold), they must apply Reverse Charge Mechanism (pay GST on their own via GSTR-3B). Manual tracking of supplier registration status, RCM eligibility determination, and timely GSTR-3B filing creates errors. Missed RCM applications result in: (1) Penalties; (2) Interest @18% p.a. on unpaid RCM GST; (3) ITC blocking if RCM not filed timely.

Key Findings

  • Financial Impact: Estimated: ₹25,000–₹2,50,000 annually. Typical scenario: 20–30 unregistered vendors/year × ₹10,000–₹50,000 per vendor = ₹2–₹15 lakh annual RCM liability. Penalties for non-filing: ₹5,000–₹50,000+ per violation; interest: 18% p.a. on dues.
  • Frequency: Quarterly/monthly (RCM filing in GSTR-3B); ongoing vendor onboarding risk.
  • Root Cause: Manual supplier registration verification; lack of pre-invoice RCM eligibility check; no system-level RCM tracking; delayed GSTR-3B RCM line-item filing.

Why This Matters

The Pitch: Event services companies in India incur ₹25,000–₹2,50,000 annually in RCM compliance failures, penalties, and interest charges. Automated RCM detection (supplier registration check) and filing eliminates this risk.

Affected Stakeholders

Vendor Management Team, Finance/Compliance, Procurement, Invoice Processing

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Financial Impact

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Methodology & Sources

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

Evidence Sources:

Related Business Risks

GST रजिस्ट्रेशन विलंब और ITC नुकसान

Estimated: ₹50,000–₹5,00,000 annually per company (penalties + forfeited ITC on ₹10–₹50 lakh annual purchases at 18% GST rate = ₹1.8–₹9 lakh potential ITC loss; penalties for late registration: ₹10,000–₹1,00,000+).

GSTR-1 और GSTR-3B दाखिल करने में देरी जुर्माना

Estimated: ₹25,000–₹2,50,000 annually. Interest accrual: 18% p.a. on tax amount due (e.g., 2-month delay on ₹1 lakh GST liability = ₹3,000 interest). Penalties: ₹100–₹500 per day of delay (typical penalty: ₹10,000–₹50,000 per annum for repeated breaches).

माइलस्टोन भुगतान और बिल योग्य सेवाएं छूट जाना

Estimated: 2–5% revenue leakage = ₹2–₹5 lakh annually per ₹1 crore revenue. Example: 50-event company at ₹5 lakh per event = ₹2.5 crore revenue; 3% leakage = ₹75 lakh annual loss.

मील का पत्थर भुगतान सत्यापन और अनुमोदन में देरी

Estimated: ₹25–₹50 lakh monthly cash drag per ₹2.5 crore annual revenue company. Working capital cost: 12% p.a. = ₹30,000–₹60,000 monthly opportunity cost. Annual impact: ₹3.6–₹7.2 lakh.

GST अनुपालन और ITC सुलह मैनुअल कार्य बोझ

Estimated: 20–40 hours/month × ₹2,000–₹5,000/hour (finance staff cost) = ₹40,000–₹2,00,000 monthly = ₹4.8–₹24 lakh annually. Additional: ₹5,000–₹50,000 lost ITC claims per flagged invoice (delayed resolution = blocked credits for 1–3 months).

GST गैर-अनुपालन जुर्माना

₹10,000-₹25,000 penalty per return + 100% of denied ITC (typically 2-5% of vendor spend)

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