Reverse Charge under GST

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Services Notified under Reverse Charge Mechanism in GST

In exercise of the powers conferred by sub-section (3) of section 9 of the Central Goods and Services Tax Act, 2017 and sub-section (3) of section 5 of the Integrated Goods and Services Tax Act, 2017 the Central Government on the recommendations of the Council has notified some categories of supply of services by some specific persons to some specific persons on which GST will be paid on reverse charge mechanism by the recipient of the services.

So let us have a look at all such services which are subject to reverse charge mechanism under GST in the table down below:

Sl.
No.
Category of Supply of ServicesSupplier
of service
Recipient of Service
(1)(2)(3)(4)
1Supply of Services by a goods transport agency (GTA) in respect of transportation of goods by road to-
(a) any factory registered under or governed by the Factories Act, 1948(63 of 1948);or
(b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or
(c) any co-operative society established by or under any law; or
(d) any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; or
(e) any body corporate established, by or under any law; or
(f) any partnership firm whether registered or not under any law including association of persons; or
(g) any casual taxable person.
Goods Transport Agency (GTA)(a) Any factory registered under or governed by the Factories Act, 1948(63 of 1948); or
(b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or
(c) any co-operative society established by or under any law; or
(d) any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; or
(e) any body corporate established, by or under any law; or
(f) any partnership firm whether registered or not under any law including association of persons; or
(g) any casual taxable person; located in the taxable territory.
2Services supplied by an individual advocate including a senior advocate by way of representational services before any court, tribunal or authority, directly or indirectly, to any business entity located in the taxable territory, including where contract for provision of such service has been entered through another advocate or a firm of advocates, or by a firm of advocates, by way of legal services, to a business entity.An individual advocate including a senior advocate or firm of advocates.Any business entity located in the taxable territory.
3Services supplied by an arbitral tribunal to a business entity.An arbitral tribunal.Any business entity located in the taxable territory.
4Services provided by way of sponsorship to any body corporate or partnership firm.Any personAny body corporate or partnership firm located in the taxable territory.
5Services supplied by the Central Government, State Government, Union territory or local authority to a business entity excluding, –
(1) renting of immovable property, and
(2) services specified below-
(i) services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Central Government, State Government or Union territory or local authority;
(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;
(iii) transport of goods or passengers.
Central Government, State Government, Union territory or local authorityAny business entity located in the taxable territory.
6Services supplied by a director of a company or a body corporate to the said company or the body corporate.A director of a company or a body corporateThe company or a body corporate located in the taxable territory.
7Services supplied by an insurance agent to any person carrying on insurance business.An insurance agentAny person carrying on insurance business, located in the taxable territory.
8Services supplied by a recovery agent to a banking company or a financial institution or a non-banking financial company.A recovery agentA banking company or a financial institution or a non-banking financial company, located in the taxable territory.
9Supply of services by an author, music composer, photographer, artist or the like by way of transfer or permitting the use or enjoyment of a copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 relating to original literary, dramatic, musical or artistic works to a publisher, music company, producer or the like.Author or music composer, photographer, artist, or the likePublisher, music company, producer or the like, located in the taxable territory.

Goods Notified under Reverse Charge Mechanism in GST

In exercise of the powers conferred by sub-section (3) of section 5 of the Integrated Goods and Services Tax Act, 2017 the Central Government on the recommendations of the Council has notified via ‘Notification No.4/2017-Integrated Tax (Rate)’ dated 28th June, 2017, some categories of supply of goods by some specific persons (supplier of goods) to some specific persons(recipient of goods) on which GST will be paid on reverse charge mechanism by the recipient of the goods.Goods Notified under Reverse Charge Mechanism in GST

So let us have a look at all such goods, the supply of which are subject to reverse charge mechanism under GST in the table down below:

S.
No.
Tariff item, sub-heading, heading or ChapterDescription of supply of GoodsSupplier of goodsRecipient of supply
12345
10801Cashew nuts, not shelled or peeledAgriculturistAny registered person
21404 90 10Bidi wrapper leaves (tendu)AgriculturistAny registered person
32401Tobacco leavesAgriculturistAny registered person
45004 to 5006Silk yarnAny person who manufactures silk yarn from raw silk or silk worm cocoons for supply of silk yarnAny registered person
5Supply of lottery.State Government, Union Territory or any local authorityLottery distributor or selling agent. Explanation.- For the purposes of this entry, lottery distributor or selling agent has the same meaning as assigned to it in clause (c) of Rule 2 of the Lotteries (Regulation) Rules, 2010, made under the provisions of sub section 1 of section 11 of the Lotteries (Regulations) Act, 1998 (17 of
1998).

 

2 COMMENTS

  1. Dear Sir,
    Please confirm , i have paid rent of rs 10,000/- pm for my office . what is gst impact for the same. whether i have to pay GST under RCM ????
    Please confirm

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