IN GST regime, under RCM (Reverse charge mechanism), for supply of following services as in the table below has been notified, the GST payment of which is on the recipient of services, instead of supplier of service. For ease of understanding, updated comprehensive list is appended with notifications for amendment/insertion:-
| S.No. | Category of Supply of Services | Supplier of service | Recipient of Service liable for GST payment | Notification No. |
| 1. | Supply of Services by a goods transport agency (GTA), who has not paid central tax at the rate of 6%, 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) anybody 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) anybody 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. |
13/2017-Central Tax (Rate) dated 28.06.2017 (amended by 22/2017-Central Tax (Rate) dated 22.08.2017 – amendment as :
who has not paid central tax at the rate of 6%,” shall be inserted;
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| 2. | “Services provided by an individual advocate including a senior advocate or firm of advocates by way of legal services, directly or indirectly. Explanation. – “legal service” means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority.”. | An individual advocate including a senior advocate or firm of advocates. | Any business entity located in the taxable territory. | Category of supply of service amended through corrigendum dated 25.09.2017. |
| 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 anybody corporate or partnership firm. | Any person | Anybody 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 local authority | Any business entity located in the taxable territory. | |
| 5A | Services supplied by the Central Government, State Government, Union territory or local authority by way of renting of immovable property to a person registered under the Central Goods and Services Tax Act, 2017 (12 of 2017). | Central Government, State Government, Union territory or local authority | Any person registered under the Central Goods and Services Tax Act, 2017.” | Inserted by Notification No. 3/2018- Central Tax (Rate) dated 25.01.2018. |
| 5B | Services supplied by any person by way of transfer of development rights or Floor Space Index (FSI) (including additional FSI) for construction of a project by a promoter. | Any person | Promoter | Inserted by Notification No. 05/2019- Central Tax (Rate) dated 29.03.2019. |
| 5C | Long term lease of land (30 years or more) by any person against consideration in the form of upfront amount (called as premium, salami, cost, price, development charges or by any other name) and/or periodic rent for construction of a project by a promoter. | Any person | Promoter.” | Inserted by Notification No. 05/2019- Central Tax (Rate) dated 29.03.2019. |
| 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 nonbanking 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 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. ”; | Amended by Notification No. 22/2019- Central Tax (Rate) dated 30.09.2019. |
| 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. |
Inserted by Notification No. 22/2019- Central Tax (Rate) dated 30.09.2019. |
| 10. | Supply of services by the members of Overseeing Committee to Reserve Bank of India | Members of Overseeing Committee constituted by the Reserve Bank of India | Reserve Bank of India.” | Inserted by Notification No. 33/2017- Central Tax (Rate) dated 13.10.2017 |
| 11. | Services supplied by individual Direct Selling Agents (DSAs) other than a body corporate, partnership or limited liability partnership firm to bank or non-banking financial company (NBFCs). | Individual Direct Selling Agents (DSAs) other than a body corporate, partnership or limited liability partnership firm. | A banking company or a non-banking financial company, located in the taxable territory.” | Inserted by Notification No. 15/2018- Central Tax (Rate) dated 26.07.2018. |
| 12. | Services provided by business facilitator (BF) to a banking company | Business facilitator (BF) | A banking company, located in the taxable territory | Inserted by Notification No. 29/2018- Central Tax (Rate) dated 31.12.2018. |
| 13. | Services provided by an agent of business correspondent (BC) to business correspondent (BC). | An agent of business correspondent (BC) | A business correspondent, located in the taxable territory. | Inserted by Notification No. 29/2018- Central Tax (Rate) dated 31.12.2018. |
| 14. | Security services (services provided by way of supply of security personnel) provided to a registered person: Provided that nothing contained in this entry shall apply to, – (i)(a) a Department or Establishment of the Central Government or State Government or Union territory; or (b) local authority; or (c) Governmental agencies; which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under section 51 of the said Act and not for making a taxable supply of goods or services; or (ii) a registered person paying tax und | Any person other than a body corporate | A registered person, located in the taxable territory.” | Inserted by Notification No. 29/2018- Central Tax (Rate) dated 31.12.2018. |
| 15. | Services provided by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient, provided to a body corporate. | Any person, other than a body corporate who supplies the service to a body corporate and does not issue an invoice charging central tax at the rate of 6 per cent. to the service recipient | Anybody corporate located in the taxable territory.” | Inserted by Notification No. 22/2019- Central Tax (Rate) dated 30.09.2019.
Amended by Notification No. 29/2019- Central Tax (Rate) dated 31.12.2019 |
| 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.” | Inserted by Notification No. 22/2019- Central Tax (Rate) dated 30.09.2019. |
Author Bio
PURCHASE BRICKS FROM UNREGISTERED PERSON. THEN RCM PAYABLE ?
USE FOR NEW CONSTRUCTION.
Dear Sir,
I purchased a service from URD firm ( Email renewal expenses) amount is 18000/-. Will RCM applicable on this Invoice? thanks in advance
Excellent!
Very good explanation