GST Reverse Charge Mechanism Explained: Complete List of Services Notified Under RCM
SYNOPSIS: After going through this article you will be able to answer the question Who is Liable Under RCM in GST? Complete List of Services is also attached in this article
Under GST Regime, it is a settled law and practice that the seller of goods and services collects GST and remit the same to the GST Department through GST return (generally alongwith GSTR-3B). However, a couple of following mechanism has defied such general practice:
1) The responsibility to discharge Tax Liability is neither of seller nor of buyer but of third party (like e-commerce operator)
2) The responsibility to discharge Tax Liability is not of seller but of the buyer (Known as Reverse Charge Mechanism or “RCM”)
This article envisaged to compile all the services on which Tax Discharging liability is on the buyer i.e. services falling under Reverse Charge Mechanism. Key Notification is Notification No 13/2017 dated 28.06.2017 and has been amended 16 times till December,2025.
The List is as follows:
| S.No. | Service Description | Salient Features |
| 1. | GTA Services (by any service provider) | Recipient: GST Registered Person/ Registered Factory/ Registered Society/ Cooperative Society/Casal Taxable Person/Body Corporate/ Partnership firm/ LLP
Exception: 1) Recipient is Government Department/ Local Authority/ Government Agency registered under GST only for TDS purpose 2) Supplier charges tax under forward charge and mention prescribed declaration on invoice |
| 2. | Legal Service by advocate or firm of advocates | Advice, consultancy or assistance in any rach of aw including representational services |
| 3. | Service of arbitral tribunal | Recipient: Any business Entity |
| 4. | Sponsorship Service | Provider: Non Body Corporate Recipient: Any body corporate /partnership form |
| 5. | Services by Government/ Local Authority / Government Agency except:
a) Renting of Immovable property b) Services by Department of Post and Indian Railways c) Services for aircraft and vessel d) Transport of goods or passengers |
Recipient: Any business Entity |
| 6. | Services Renting of Immovable property by Government/ Local Authority / Government Agency | Recipient: GST Registered Person |
| 7. | Service by way of renting of residential dwelling to a GST Registered Person | Recipient: GST Registered Person |
| 8. | Service by way of renting of any immovable property other than residential dwelling | Recipient: GST Registered Person except registered as composition dealer |
| 9. | 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. | Recipient: Promoter of Project |
| 10. | Long term lease of land (30 years or more) by any person against consideration in the form of upfront amount and/or periodic rent for construction of a project by a promoter. | Recipient: Promoter of Project |
| 11. | Services by a director of a company / body corporate to the said company / body corporate. | Recipient: company / the body corporate |
| 12. | Services by an insurance agent | Recipient: person carrying on insurance business |
| 13. | Services supplied by a recovery agent | Recipient: Banking Company / financial institution /NBFC |
| 14. | services by a music composer / photographer/ artist etc. by transfer /permitting the use or of a copyright of original dramatic, musical or artistic works | Recipient: a music company, producer or the like |
| 15. | Services by an author by transfer /permitting the use or of a copyright of original literary works | Recipient: Publisher
Exception: Author charges tax under forward charge and mention prescribed declaration on invoice |
| 16. | Services by the members of Overseeing Committee | Recipient: RBI |
| 17. | Services supplied by individual DSAs | Recipient: Bank or DSA
Exception: DSA is Body Corporate/ Partnership firm/ LLP |
| 18. | Services provided by business facilitator (BF) | Recipient: Bank |
| 19. | Services provided by an agent of business correspondent (BC) to another business correspondent (BC). | Recipient: BC |
| 20. | Security services (services provided by way of supply of security personnel) | Recipient: GST Registered Person Exception:1) Recipient is Government Department/ Local Authority/ Government Agency registered under GST only for TDS purpose2) Supplier is registered under section 10 (Composition scheme) |
| 21. | Services 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 (Taxi service). | Recipient: GST Registered Person
Service Provider: Non Body corporate Supplier issuing invoice without charging of GST @ 12%. |
| 22. | Services of lending of securities under Securities Lending Scheme,1997 (“Scheme”) of SEBI | Recipient: Borrower of security
Service Provider: Lender of security |
So…
“POOCHO SAHI……. CONFUSION NAHI”
#POOCHOSAHICONFUSIONNAHI
******
Disclaimer: The information contained in this document is intended solely for dissemination of information and doesn’t aim at soliciting work in any manner. Though meticulous care has been taken but the author assumes no liability in respect of any loss/damage incurred while acting on the basis of information provided. The above framework has been developed by the author after researching since long time and a proprietary intellectual property of the author. The author can be reached at AKSHAY.AKAC@GMAIL.COM and can be called at +91-7011503210.
Author Bio
