February 23, 2023
Prudhvi Raj

RCM on Foreign Company Invoices, GST Evasion Complain

Small and Medium-sized businesses are the backbone of any economy, and India is no different. The Indian government has been taking various measures to ensure that these businesses are able to grow and prosper. However, there are still some areas where business owners are unsure about the regulations and laws. In this article, we will be answering some frequently asked questions about RCM on foreign company invoices and GST evasion complaints.

What is RCM on Foreign Company Invoices?

In simple terms, Reverse Charge Mechanism (RCM) is a system where the recipient of goods or services is responsible for paying the tax instead of the supplier. When it comes to foreign companies, RCM on invoices is applicable if the supplier is not registered in India. This means that the recipient of the goods or services will have to pay the applicable taxes on behalf of the supplier.

What are the documents required for RCM on Foreign Company Invoices?

The documents required for RCM on foreign company invoices are similar to those required for regular invoices. The only difference is that in the case of foreign companies, additional documents such as the Bill of Entry, the Importer Exporter Code (IEC), and the Customs Duty Payment Receipt may be required.

What is GST Evasion?

GST Evasion is the act of not paying the correct amount of Goods and Services Tax (GST) to the government. This can be done intentionally or unintentionally, and can result in severe penalties and legal action. GST evasion can take many forms, such as not registering for GST, not filing GST returns, or under-reporting GST amounts.

What is the penalty for GST Evasion?

The penalty for GST evasion can be quite severe. Depending on the nature and extent of the evasion, the penalty can range from a monetary fine to imprisonment. In addition, the evader may be required to pay the GST dues along with interest, and may also be banned from doing business in the future.

How can I file a complaint about GST Evasion?

If you suspect that a business or individual is evading GST, you can file a complaint with the GST authorities. The complaint can be filed online or offline, and should include all relevant details such as the name and address of the evader, the nature of the evasion, and any supporting documents. The GST authorities will then investigate the matter and take appropriate action.


In conclusion, RCM on foreign company invoices and GST evasion are important issues that small and medium-sized business owners should be aware of. By understanding the regulations and laws, business owners can ensure that they are operating within the legal boundaries and avoid any penalties or legal action. If you have any further questions or concerns about these issues, it is advisable to consult a tax expert or a legal advisor.


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