Seeks to amend notification No. 13/2017- Central Tax (Rate) so as to notify services under reverse charge mechanism (RCM) as recommended by GST Council in its 37th meeting held on 20.09.2019 vide Notification No. 22/2019-Central Tax (Rate) dated 30th September, 2019.
Additional services covered under Reverse Charge Mechanism (RCM)
| Nature of Service | Service Provider | Person liable to pay tax |
| Services of renting of a motor vehicle provided to a body corporate | Any person other than a body corporate, paying central tax at the rate of 2.5% on renting of motor vehicles with input tax credit only of input service in the same line of business. | Any body corporate located in the taxable territory |
| Services of lending of securities under Securities Lending Scheme, 1997 (“Scheme”) of Securities and Exchange Board of India (“SEBI”), as amended. | Lender i.e. a person who deposits the securities registered in his name or in the name of any other person duly authorised on his behalf with an approved intermediary for the purpose of lending under the Scheme of SEBI | Borrower i.e. a person who borrows the securities under the Scheme through an approved intermediary of SEBI.” |
Services of author – option to pay under forward charge
- With respect to the services of transfer or permitting the use or enjoyment of a copyright relating to original literary works supplied by an author to a publisher, the author is given a choice to either pay the GST under forward charge, else the publisher located in India would be liable to pay GST under RCM.
- In case the author wishes to pay under forward charge, he should be registered under the CGST Act, 2017 and file a declaration in Annexure I with the jurisdictional CGST or SGST Commissioner by 31st Oct ’19 for exercising the option from 01.11.2019 (for F.Y 2019-20) or before commencement of a financial year for the option to be effective from that financial year. This declaration would be valid up to the end of the financial year 2019-20. Such declaration is to be filed for each financial year.
- Also, the author is required to make a declaration in accordance with Annexure II on the invoice issued by him in Form GST INV-I to the publisher.
- The declaration in Annexure I shall be filed on or before 31.10.2019 for exercising the option from 1.11.2019 (for FY 2019-20) or before commencement of a financial year for the option to be effective from that financial year. The option cannot be withdrawn within a period of 1 year from the date of exercise.
Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 22/2019- Central Tax (Rate)
New Delhi, the 30th September, 2019
GSR 737(E).- In exercise of the powers conferred by sub-section (3) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.13/2017- Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 692(E), dated the 28th June, 2017, namely:-
In the said notification, in the Table, –
(i) for serial number 9 and the entries relating thereto, the following shall be substituted, namely: –
| (1) | (2) | (3) | (4) |
| “9 | Supply of services by a 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 dramatic, musical or artistic works to a music company, producer or the like. | Music composer, photographer, artist, or the like | Music company, producer or the like, located in the taxable territory. ”; |
(ii) after serial number 9 and the entries relating thereto, the following serial number and entries shall be inserted, namely: –
| (1) | (2) | (3) | (4) |
| “9A | Supply of services by an author 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 works to a publisher. |
Author | Publisher located in the taxable territory:Provided that nothing contained in this entry shall apply where, -(i) the author has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017), and filed a declaration, in the form at Annexure I, within the time limit prescribed therein, with the jurisdictional CGST or SGST commissioner, as the case may be, that he exercises the option to pay central tax on the service specified in column (2), under forward charge in accordance with Section 9 (1) of the Central Goods and Service Tax Act, 2017 under forward charge, and to comply with all the provisions of Central Goods and Service Tax Act, 2017 (12 of 2017) as they apply to a person liable for paying the tax in relation to the supply of any goods or services or both and that he shall not withdraw the said option within a period of 1 year from the date of exercising such option;(ii) the author makes a declaration, as prescribed in Annexure II on the invoice issued by him in Form GST Inv-I to the publisher. ”; |
(iii) after serial number 14 and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: –
| (1) | (2) | (3) | (4) |
| “15 | Services provided by way of renting of a motor vehicle provided to a body corporate. | Any person other than a body corporate, paying central tax at the rate of 2.5% on renting of motor vehicles with input tax credit only of input service in the same line of business |
Any body corporate located in the taxable territory. |
| 16 | Services of lending of securities under Securities Lending Scheme, 1997 (“Scheme”) of Securities and Exchange Board of India (“SEBI”), as amended. |
Lender i.e. a person who deposits the securities registered in his name or in the name of any other person duly authorised on his behalf with an approved intermediary for the purpose of lending under the Scheme of SEBI |
Borrower i.e. a person who borrows the securities under the Scheme through an approved intermediary of SEBI.”. |
2. This notification shall come into force on the 1st day of October, 2019.
Annexure I
FORM
(9A of Table)
(Declaration to be filed by an author for exercising the option to pay tax on the “supply of services by an author 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 works to a publisher” under forward charge on or before 31.10.2019 for the option to be effective from 1.11.2019 or before the commencement of any Financial Year for the option to be effective from the commencement of that Financial Year.)
Reference No._______________
Date ______________
To
____________
____________
____________
(To be addressed to the jurisdictional Commissioner)
1. Name of the author:
2. Address of the author:
3. GSTIN of the author:
Declaration
1. I have taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017), and I hereby exercise the option to pay central tax on the service specified against serial No. 9A in column (2) of the Table in the notification No. 13/2017 – Central Tax (Rate), dated the 28th June, 2017, supplied by me, under forward charge in accordance with section 9 (1) of CGST Act, and to comply with all the provisions of CGST Act, 2017 (12 of 2017) as they apply to a person liable for paying the tax in relation to the supply of any goods or services or both;
2. I understand that this option, once exercised, shall not be allowed to be changed within a period of 1 year from the date of exercising the option and shall be valid, at least, till the end of Financial Year following the year in which it is made.
Signature ________________
Name ___________________
GSTIN _________________
Place __________________
Date ______________________
Annexure II
(Declaration to be made in the invoice by the author exercising the option to pay tax on the “supply of service by an author 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 works to a publisher” under forward charge.)
Declaration
(9A of Table)
I have exercised the option to pay central tax on the service specified against serial No. 9A in column (2) of the Table in the notification No. 13/2017-Central Tax (Rate) dated 28th June, 2017 under forward charge.
[F. No.354/1 36/2019 -TRU]
(Ruchi Bisht)
Under Secretary to the Government of India
Note: -The principal notification No. 13/2017 – Central Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 692 (E), dated the 28th June, 2017 and was last amended by notification No. 5/2019 – Central Tax (Rate), dated the 29th March, 2019 vide number G.S.R. 252(E), dated the 29th March, 2019.
