Articles covers list of services that will be under reverse charge as approved by the GST Council and Percentage of GST payable by service provider and any person other than Nthe service provider.
SERVICES UNDER REVERSE CHARGE AS APPROVED BY GST COUNCIL
The fitment of rates of services were discussed on 19 May 2017 during the 14th GST Council meeting held at Srinagar, Jammu & Kashmir. The Council has broadly approved the GST rates for services at Nil, 5%, 12%, 18% and 28%. The list of services that will be under reverse charge as approved by the GST Council is given below. The information is being uploaded immediately after the GST Council’s decision and it will be subject to further vetting during which the list may undergo some changes. The decisions of the GST Council are being communicated for general information and will be given effect to through gazette notifications which shall have force of law.
| Sl. No. | Service | Provider of service | Percentage of service tax payable by service provider |
Recipient of Service | Percentage of service tax payable by any person other than the service provider |
| 1. | Taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory other than non- assessee online recipient (OIDAR) |
Any person who is located in a non- taxable territory |
Nil | Any person located in the taxable territory other than non-assessee online recipient (Business Recipient) |
100% |
| 2.
|
Services provided or agreed to be provided by a goods transport agency (GTA) in respect of transportation of goods by road | Goods Transport Agency (GTA)
|
Nil
|
(a) any factory registered under or governed by the Factories Act, 1948;
(b) any society registered under the Societies Registration Act, 1860 or under any other law for the time being in force in any part of India; (c) any co-operative society established by or under any law; (d) any person registered under CGST/SGST/UTGST Act; (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. (g) Casual taxable person |
100%
|
| 3. | Services provided or agreed to be provided by an individual advocate or firm of advocates by way of legal services, directly or indirectly | An individual advocate or firm of advocates |
Nil | Any business entity. | 100% |
| 4. | Services provided or agreed to be provided by an arbitral tribunal | An arbitral tribunal |
Nil | Any business entity. | 100% |
| 5. | Sponsorship services | Any person | Nil | Anybody corporate or partnership firm. |
100% |
| 6. | Services provided or agreed to be provided by Government or local authority excluding, ‑
(1) renting of immovable (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 (ii) services in relation to an aircraft or a vessel, inside or outside the (iii) transport of goods or |
Government or local authority |
Nil | Any business entity. | 100% |
| 8. | Services provided or agreed to be provided 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 | Nil | A company or a body corporate. | 100% |
| 9. | Services provided or agreed to be provided by an insurance agent to any person carrying on insurance business | An insurance agent | Nil | Any person carrying on insurance business. |
100% |
| 10. | Services provided or agreed to be provided by a recovery agent to a banking company or a financial institution or a non- banking financial company | A recovery agent |
Nil | A banking company or a financial institution or a non-banking financial company. | 100% |
| 11. | Services by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India |
A person located in non-taxable territory to a person located in non-taxable territory |
Nil | Importer as defined under clause (26) of section 2 of the Customs Act, 1962. | 100% |
| 17. | 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 | Author or music composer, photographer, artist, etc |
NIL | Publisher, Music company, Producer |
100% |
| 18 | Radio taxi or Passenger Transport Services provided through electronic commerce operator | Taxi driver or Rent a cab operator | Nil | Any person | 100% by Electronic Commerce Operator |
In REVERSE CHARGE MECHANISM OF RENT A CAB CAN WE CHARGE GST TO ANOTHER CAB VENDOR WHO HAS RECEIVED OUR SERVICE FOR HIS CLIENT ………….BECAUSE OF WE ARE IN SAME BUSINESS
____GST query for Product Registration Fees____
We have received an invoice from the foreign vendor in France which is a government organisation in France. The service provided by them is for Product registration services. Please let us know whether GST will attract under Reverse charge mechanism or not. It yes then what will be the percentage of GST.
We have received an invoice from foreign based company for product registration services. The foreign company is a government organisation. Please let me know whether the expenses will be charge under reverse charge mechanism in india or not and under which percentage.
please tell me, what is rate of gst on gta (example i.e 18% but pay on 100% value or 30% value on gross value)
S.No.12 to 16 missing in list, please check
Is GST applicable to persons acting as Agents for mobilization of deposits for postal savings schemes / LIC/ LIC Housing/ HDFC Ltd./ DHFL Ltd./ GOI Bonds/ Mutual Funds etc etc.
Chart of Services Under Reverse Charge as approved by GST Council & Sl No 18.
A housewife hires a taxi and she will have the liability of paying GST under Reverse Charge as “any person”. Council may clarify please.
Where is the justification of Reverse Charge Mechanism except in the case of an importer? Others, including Government, can collect forward service charge and pay the same. Why does the Honourable Finance Minister want to shift the burden onto others. Imagine a small business man with turnover of less than Rs. 20 lakhs, who is not otherwise liable for registration, has to obtain Registration under GST simply because he is liable to pay certain transport charges to GTA. This would simply take away the benefit of threshold limit. Where is the ease of doing business?
Putting fees paid to an individual advocate or a firm of advocates under reverse charge mechanism is height of stupidity. If other professionals like Chartered Accountants, Cost Accountants, Company Secretaries, Architects, Artists are liable on forward charge, why advocate fees on reverse charge? Is it because Mr. Jaitley is an advocate and prior to him, the person who introduced reverse service charge on advocates, Mr. Chidambaram, was also an advocate? Mr. Jaitley, please justify reverse charge on advocates, who are supposed to be learned. Or is it because they are learned that they know how to put their burden on others.
wht is gst for private coaching class & dth mobility recharge
What is the GST rates on computer INkjet and Laser printers along with consumables, used in toners
What about Manpower supply service?