To notify the categories of services on which tax will be payable under reverse charge mechanism under CGST Act
Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 13/2017- Central Tax (Rate)
New Delhi, the 28th June, 2017
GSR 692(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 notifies that on categories of supply of services mentioned in column (2) of the Table below, supplied by a person as specified in column (3) of the said Table, the whole of central tax leviable under section 9 of the said Central Goods and Services Tax Act, shall be paid on reverse charge basis by the recipient of the such services as specified in column (4) of the said Table:-
Table
| Sl. No. | Category of Supply of Services | Supplier of service | Recipient of Service |
| (1) | (2) | (3) | (4) |
| 1 | Supply 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 (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. |
| 2 | Services 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. |
| 3 | Services supplied by an arbitral tribunal to a business entity. | An arbitral tribunal. | Any business entity located in the taxable territory. |
| 4 | Services provided by way of sponsorship to any body corporate or partnership firm. | Any person | Any body corporate or partnership firm located in the taxable territory. |
| 5 | Services 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 localauthority |
Any business entity located in the taxable territory. |
| 6 | Services 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 corporate |
The company or a body corporate located in the taxable territory. |
| 7 | Services supplied by an insurance agent to any person carrying on insurance business. | An insurance agent | Any person carrying on insurance business, located in the taxable territory. |
| 8 | Services supplied by a recovery agent to a banking company or a financial institution or a non- banking financial company. | A recovery agent | A banking company or a financial institution or a non-banking financial company, located in the taxable territory. |
| 9 | Supply 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 like |
Publisher, music company, producer or the like, located in the taxable territory. |
Explanation.– For purpose of this notification,-
(a) The person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this notification.
(b) “Body Corporate”has the same meaning as assigned to it in clause (11) of section 2 of the Companies Act, 2013.
(c) the business entity located in the taxable territory who is litigant, applicant or petitioner, as the case may be, shall be treated as the person who receives the legal services for the purpose of this notification.
(d) the words and expressions used and not defined in this notification but defined in the Central Goods and Services Tax Act, the Integrated Goods and Services Tax Act, and the Union Territory Goods and Services Tax Act shall have the same meanings as assigned to them in those Acts.
2. This notification shall come into force on the 1st day of July, 2017.
[F. No. 334/1/2017- TRU]
(Ruchi Bisht)
Under Secretary to the Government of India
To move taxable goods from my factory premises to GTA Transport office for supply to the buyer through local transport i.e. Auto or mini carriage vehicles (Un registered) at the time we have paid outward freight charges to un registered persons with RCM -5% (Input & Output shown in GSTR-3B) in this regard we booked expenses as Outward freight Charges in Profit & Loss account. But, GST Officer not accepted by GST RCM-5% input taken, They demanded 18% GST. So , pls give the advice which is the correct?
Dear Sir,
Ours is a residential welfare society registered under societies act, Govt of Andhra Pradesh. We have 518 apartments in our welfare society and there is only one electric supply meter. We have sub meters to individual flats and other common utilities.
We have registered with GST and paying gst on other services.
We collect Rs.2500/- per flat towards maintenance of common utilities and Electric bill from Individual flats as per sub meter reading. Association will receive total bill and flat occupants will reimburse electricity bill as per their consumption recorded in the mater.
There is lot of controversy regarding electricity bill collected by the association from the residents. If monthly maintenance+ electricity charges exceeds Rs.7500/- whether we need to collect GST. Please clarify.
With Regards
M Umapathi
Treasurer
9493982430
rent a Cab vendor is one time vendor and i am paying Rs 1500 is it applicable RCM
Whether GST is applicable on the salary of a person deputed by a company to a cooperative society to give some service.
govt of karnataka collects some fund along with royalty. thiis is a fund collected separately by the govt. it district mining fund which is used for some development work etc of mining sector or employees. whether the crusher unit should pay RCM on that also. My opinion is that no RCM be paid on that. Will you please clarify.
Purchase contract to unregistered dealer for services of photography work will comes under GST RCM?
Dear Sir,
I am an insurance agent. My Company is deducting GST from the Gross Commission they are paying me for my services. I wanted to understand if the company can deduct the GST from my gross commission OR not. AS per GST law, they have to pay GST over and above the Gross Commission themselves to the GST department in reverse charge mechanism but here they are deducting from my commission…
DEAR SIR,
I AM RENT CAB OPERATOR. REGISTER UNDER GST.
I HAVE TO CHARGE GST OR PARTY WILL PAY THE TAX ITSELF?