Article explains What is Reverse Charge, Analysis of provisions stated under Section 9(3) and Section 9(4) of the CGST Act, Journey of Section 9 (4) of the CGST Act from 01-07-2017 to 31-01-2019, Input Tax Credit provisions in regard of Reverse Charge Mechanism, Set Off of Reverse Charge Liability, Time of Supply in the case of Reverse Charge Mechanism, Invoicing by the Recipient pay tax on Reverse Charge basis, Table of Services for Section 9(3) as per Notification No.13/2017 Central Tax (Rate) with amendment up to 30-09-2019, Table of Goods for Section 9(3) as per Notification No.4/2017 Central Tax (Rate) with amendment up to 30-09-2019 and Table for Section 9(4) as per Notification No.7/2019 Central Tax (Rate) with effect from 01-04-2019 further amended upto 30-09-2019.

A. What is Reverse Charge ?

Reverse Charge means as per section 2 (98) of the CGST Act is “the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act.”

It is clear from the definition that tax shall have to be paid by the Recipient in place of Supplier under Reverse Charge Mechanism.

Reverse Charge Mechanism is governed by sub-section (3) and sub-section (4) of section 9 of the CGST Act and sub-section (3) and sub-section (4) of the section 5 of the IGST Act.

B. Analysis of provisions stated under Section 9 (3) and Section 9 (4) of the CGST Act.

1. Under section 9 (3) of the CGST Act the tax shall be paid on reverse charge basis on notified goods or services or both by the Recipient of such goods or services or both. Recipient may be a registered person or an unregistered person.

If the Recipient is the unregistered person then such unregistered person shall have to take compulsory GST registration according to section 24 (iii) of the CGST Act.

Notification No. 4/2017-Central Tax (Rate), dated 28-6-2017 for reverse charge on certain specified supplies of goods. ( see para I for this notification )

Notification No. 13/2017-Central Tax (Rate), dated 28-6-2017 for notified categories of services on which tax will be payable under reverse charge mechanism. ( see para H for this notification )

2. Under section 9 (4) of the CGST Act ( w.e.f. 01-02-2019 ) notified Registered Persons shall be liable to pay tax on reverse charge basis on supply of notified goods or services or both from unregistered supplier.

3. Thus we can note under both sections 9 (3) and 9 (4) tax shall be paid on reverse charge basis on notified goods or services.

The Recipient in section 9 (3) may be the registered or unregistered person but in section 9 (4) the Recipient shall be the notified registered person only.

The supplier of goods or services in the case of section 9 (3) may be the registered or unregistered person but under section 9 (4) the Supplier shall be the unregistered person.

4. Under both sections the law say that “all the provisions of this Act ( CGST Act ) shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.”

5. Following Persons are exempted from payment of tax under section 9 (4) of the CGST Act.

5.1 Notification No. 9/2017-Central Tax (Rate), dated 28-6-2017 for exemption to intra-State supplies of goods or services or both received by a deductor under section 51 from an unregistered supplier.

5.2 Notification No. 10/2017-Central Tax (Rate), dated 28-6-2017 for exemption to intra-State supplies of second hand goods received by a registered person from an unregistered supplier.

6. Notification No. 7/2019-Central Tax (Rate), dated 29-3-2019, issued for Section 9 (4) of Act, is notifying Registered Persons and Goods or services supplied from unregistered persons. ( see para J for this notification )

Notified Registered Persons in this notification are Builders who shall pay tax on reverse charge basis on certain specified supplies of goods or services or both received from an unregistered suppliers.

C. Journey of Section 9 (4) of the CGST Act from 01-07-2017 to 31-01-2019 –

1. From 01-07-2017 to 12-10-2017 according to this section a registered person was to pay tax on reverse charge basis if aggregate value of supply of taxable goods or services or both exceed Rs.5000.00 in a day from any or all unregistered persons. Notification 8/2017 Central Tax (Rate) dated 28-06-2017.

2. From 13-10-2017 the registered persons were exempted from making payment of tax on reverse charge basis on supply of goods or services or both from the person who is not registered under the Act.

3. From 01-02-2019 provisions of section 9 (4) replaced vide Central Goods and Services Tax (Amendment) Act, 2018.

D. Input Tax Credit provisions in regard of Reverse Charge Mechanism

1. Input Tax Credit is not allowed to the Supplier – The Supplier is not eligible to avail input tax credit on purchases of goods or services or both on which supply, tax shall be paid by the Recipient on reverse charge basis.

Why input tax credit is not allowed because according to section 17 (3) of the CGST Act supplies, on which the recipient is liable to pay tax on reverse charge basis, shall be treated as Exempt Supplies. Therefore input tax credit is not allowed on such goods or services which supply shall be treated as exempt supply.

2. Input Tax Credit is allowed to the Recipient – According to section 2 (62) Input Tax includes in its definition inter alia as “the tax payable under the provisions of sub-sections (3) and (4) of section 9.”

Thus tax payable under section 9 (3) and section 9 (4) is input tax in the hand of the Recipient. The credit of such input tax can be claimed by the Recipient subject to fulfill the conditions as stated under section 16 of the CGST Act and stated under other section may be.

The conditions as stated under section 16(2) of the CGST Act are as under:

a) The registered person is in possession of Tax Invoice;

b) The registered person has received Goods or services or both as the case may be;

c) The tax charged on such goods or services or both has been paid and

d) The GST Return has been filed in regard of such of Goods or services or both.

E. Set Off of Reverse Charge Liability –

Reverse Charge Liability shall be discharged only by payment in cash. This liability cannot be set off with input tax credit available in Electronic Credit Ledger.

It is also note that Reverse Charge Tax Payable is not Output Tax as per section 2 (82) of the CGST Act.

F. Time of Supply in the case of Reverse Charge Mechanism –

1. Section 12 (3) of CGST Act Time of Supply for Goods under Reverse Charge

the time of supply shall be the earliest of the following dates, namely:—

(a) the date of the receipt of goods; or

(b) the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or

(c) the date immediately following thirty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier:

Provided that where it is not possible to determine the time of supply under clause (a) or clause (b) or clause (c), the time of supply shall be the date of entry in the books of account of the recipient of supply.

2. Section 13 (3) of the CGST Act Time of Supply for Services under Reverse Charge

the time of supply shall be the earlier of the following dates, namely:—

(a) the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or

(b) the date immediately following sixty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier:

Provided that where it is not possible to determine the time of supply under clause (a) or clause (b), the time of supply shall be the date of entry in the books of account of the recipient of supply:

Provided further that in case of supply by associated enterprises, where the supplier of service is located outside India, the time of supply shall be the date of entry in the books of account of the recipient of supply or the date of payment, whichever is earlier.

G.  Invoicing by the Recipient pay tax on Reverse Charge basis –

1. According to section 31 (3)(f) of the CGST Act reproduced as – “a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both.”

2. All provisions, contents etc. relating to Tax Invoice stated under Rule 46 of CGST Act shall applicable ipso facto to the Tax Invoice issued by the Recipient for supply for which tax payable under reverse charge.

H. Table of Services for Section 9(3) as per Notification No. 13/2017 Central Tax (Rate) as amended from time to time –

Table of Services

Sr. No. Category of Supply of Services Supplier of Service Recipient of service
(1) (2) (3) (4)
1. GTA Services

Supply of Services by a Goods Transport Agency (GTA) who has not paid central tax @ 6% in respect of transportation of goods by road to –

(a) any factory registered under or governed by the Factories Act, 1948; or

(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; or

(c) any cooperative society established by or under any law; or

(d) any person registered under CGST/IGST/SGST/or UTGST 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.

“Provided that nothing contained in this entry shall apply to services provided by a goods transport agency, by way of transport of goods in a goods carriage by road, to, –

(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 and not for making a taxable supply of goods or services.”

Goods Transport Agency (GTA) (a) any factory registered under or governed by the Factories Act, 1948; or

(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; or

(c) any cooperative society established by or under any law;

(d) any person registered under CGST/IGST/
SGST/UTGST 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.

 

 

 

 

2. Legal Services-

Services provide 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 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.

 

 

 

3 Arbitral Services

Services supplied by an arbitral Tribunal to a business entity.

An arbitral Tribunal Any business entity located in the taxable territory.
4 Sponsorship Services

Service provided by way of Sponsorship Service to anybody corporate or partnership firm.

Any person Anybody corporate or partnership firm located in the taxable territory.
5 Government Services

Services supplied by the Central Government, State Government, Union territory or local
authority to a business entity excluding the following :

(A) renting of immovable property service, and

(B) services specified below :-

(i) services by the Department of posts by way of speed post, life insurance, express parcel post 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 by the Government:

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 (with effect from 25-1-2018.

Central Government, State Government, Union territory or Local Authority. Any person registered under the Central Goods and Services Tax Act, 2017
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
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
6 Services by the Director: 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 A company or a body corporate located in the taxable territory
7 Insurance Agent Service: Services provided by an insurance agent to person carrying on insurance business. An Insurance Agent Any person carrying on insurance business, located in the taxable territory.
8 Recovery Agent Service: Services provided by a recovery agent to a banking company or a financial institution or a non-banking financial company. A Recovery Agent Banking company or financial institution or a non-banking financial company, located in the taxable territory.
9 Copyright Service –

Supply of Services by an author, music or the like by way of transfer or permitting the use or enjoyment of a copyright of a 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.
9 Copyright Service by a music composer, photographer, artist or the like

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. ”;
“9A Copyright Service by Author – w.e.f. 1st October 2019

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. ”;
10 Reserve Bank Services : w.e.f 13th October, 2017

Supply of services by the members of Overseeing Committee to (Reserve Bank of India Effective from 13-10-2017)

Members of Overseeing Committee constituted by the Reserve Bank of India. Reserve Bank of India
11 Services by DSAs :

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) Effective from 27-7-2018).

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.
12  

Services provided by Business Facilitator (BF) to a banking company.

Business facilitator (BF) A banking company, located in the taxable territory.
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.
14 Security Services

(services provided by way of supply of security personnel) provided to a registered person :

Provided that nothing contained in the 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) Government 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 under Section 10 of the said Act.

Any person other than a body corporate. A registered person, located in the “taxable territory.”
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.

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;

(e) a “Limited Liability Partnership” formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (6 of 2009) shall also be considered as a partnership firm or a firm;]

(f) “insurance agent” shall have the same meaning as assigned to it in clause (10) of section 2 of the Insurance Act, 1938 (4 of 1938);]

(g) “renting of immovable property” means allowing, permitting or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property; ]

(h) provisions of this notification, in so far as they apply to the Central Government and State Governments, shall also apply to the Parliament and State Legislatures. ]

(i) The term “apartment” shall have the same meaning as assigned to it in clause (e) under section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2017).

(j) the term “promoter” shall have the same meaning as assigned to it in clause (zk) under section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2017).

(k) the term “project” shall mean a Real Estate Project (REP) or a Residential Real Estate Project (RREP);

(l) “the term “Real Estate Project (REP)” shall have the same meaning as assigned to it in in clause (zn) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016).

(m) The term “Residential Real Estate Project (RREP)” shall mean a REP in which the carpet area of the commercial apartments is not more than 15 per cent of the total carpet area of all the apartments in the REP.

(n) “floor space index (FSI)” shall mean the ratio of a building’s total floor area (gross floor area) to the size of the piece of land upon which it is built.]

Columns 9, 9A, 15 and 16 amended w.e.f. from 01-10-2019 vide Notification No. 22/2019.

I. Table of Goods for Section 9(3) as per Notification No.4/2017 Central Tax (Rate)

Table of Goods

S. No. Tariff item, sub- heading,
heading or Chapter
Description of supply of Goods Supplier of goods Recipient of supply
(1) (2) (3) (4) (5)
1. 0801 Cashew nuts, not shelled or peeled Agriculturist Any registered person
2. 1404 90 10 Bidi wrapper leaves (tendu) Agriculturist Any registered person
3. 2401 Tobacco leaves Agriculturist Any registered person
4. 5004 to 5006 Silk yarn Any person who manufactures silk
yam from raw silk or silk worm cocoons for supply of silk yarn
Any registered person
4A. 5201 Raw cotton Agriculturist Any registered person ]
5. Supply of lottery State Govern-ment, Union Territory or any local authority Lottery distributor or selling agent. Explanation.—For the purposes of this entry, lottery distributor or selling agent has the same meaning as assigned to it in clause (c) of Rule 2 of the Lotteries (Regulation) Rules, 2010, made under the provisions of sub-section (1) of section 11 of the Lotteries (Regulation) Act, 1998 (17 of 1998).
6.  Any Chapter Used vehicles, seized and confiscated goods, old and used goods, waste and scrap Central Gover-nment, State Government, Union territory or a local authority Any registered person ]
7.   Any Chapter Priority Sector Lending Certificate Any registered person Any registered person ]

Explanation.

(1) In this Table, “tariff item”, “sub-heading”, “heading” and “Chapter” shall mean respectively a tariff item, sub-heading, heading or chapter, as specified in the

First Schedule to the Customs Tariff Act, 1975 (51 of 1975).

(2) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.

This notification shall come into force with effect from the 1st day of July, 2017.

J. Table for Section 9(4) as per Notification No.7/2019 Central Tax (Rate) with effect from 01-04-2019

Sl. No. Category of supply of goods and services Recipient
of goods
and
services
(1) (2) (3)
1 With effect from 01.04.2019

Supply of such goods and services or both [other than services by way of grant of development rights, long term lease of land (against upfront payment in the form of premium, salami, development charges etc.) or FSI (including additional FSI)] which constitute the shortfall from the minimum value of goods or services or both required to be purchased by a promoter for construction of project, in a financial year (or part of the financial year till the date of issuance of completion certificate or first occupation, whichever is earlier) as prescribed in notification No. 11/ 2017-Central Tax (Rate), dated 28th June, 2017, at items (i), (ia), (ib), (ic) and (id) against serial number 3 in the Table, published in Gazette of India vide G.S.R. No. 690, dated 28th June, 2017, as amended.

Promoter.
2

 

 

 

 

 

 

With effect from 01.04.2019 to 30.09.2019

Cement falling in chapter heading 2523 in the first schedule to the Customs Tariff Act, 1975 (51 of 1975) which constitute the shortfall from the minimum value of goods or services or both required to be purchased by a promoter for construction of project, in a financial year (or part of the financial year till the date of issuance of completion certificate or first occupation, whichever is earlier) as prescribed in notification No. 11/2017- Central Tax (Rate), dated 28th June, 2017, at items (i), (ia), (ib), (ic) and (id) against serial number 3 in the Table, published in Gazette of India vide G.S.R. No. 690, dated 28th June, 2017, as amended.

Promoter.

 

 

 

 

 

2. With Effect from 01.10.2019

inserted vide  Notification No.24/2019 Central Tax (Rate) dated 30.09.2019

Cement falling in chapter heading 2523 in the first schedule to the Customs Tariff Act, 1975 (51 of 1975).

3. With effect from 01.04.2019

Capital goods falling under any chapter in the first schedule to the Customs Tariff Act, 1975 (51 of 1975) supplied to a promoter for construction of a project on which tax is payable or paid at the rate prescribed for items (i), (ia), (ib), (ic) and (id) against serial number 3 in the Table, in notification No. 11/2017- Central Tax (Rate), dated 28th June, 2017, published in Gazette of India vide G.S.R. No. 690, dated 28th June, 2017, as amended.

Promoter

K. List of Specified Services u/s 9(5) of CGST Act and u/s 5 (5) of IGST Act on which GST is payable under RCM by Electronic Commerce Operator

In respect of specified services, tax shall be paid by the ECO on behalf of the service suppliers if such services are supplied through it and all the provisions of the Act shall apply to such ECO as if he is the supplier liable to pay tax in relation to the supply of such services. The Government has notified following categories of services, the tax on intra-State/ inter-state supplies shall be paid by the ECO –

 S. No. Description of supply of Service  Supplier of service Person Liable to Pay GST Notification No.
 1 Transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle Any person E-commerce operator Notification No. 17/2017-Central Tax (Rate) dt 28th June, 2017 Corresponding IGST Notification No. 14/2017-Integrated Tax (Rate) dt 28th June, 2017
 2 Providing accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes Any person except who is liable for registration under sub-section (1) of section 22 of the said CGST Act E-commerce operator –do–
 3 Services by way of house-keeping, such as plumbing, carpentering etc Any person except who is liable for registration under sub-section (1) of section 22 of the said CGST Act E-commerce operator Inserted vide Notification No. 23/2017-Central Tax(Rate) dated 22nd Aug, 2017 Corresponding Notification No. 23/2017-Integrated Tax (Rate) dated 22nd Aug, 2017

Furthermore, above mentioned suppliers of services covered u/s 9(5) are exempted from compulsory registration and can take benefit of threshold limit.

L. List of Notifications issued from time to time related to RCM

S. No. Notification No. and date with link
A. List of Notifications issued from time to time related to RCM U/s. 9(3)
1 Notification No. 13/2017- Central Tax (Rate) dated 28th June, 2017
2 Notification No. 22/2017 – Central Tax (Rate) dated 22nd August, 2017
3 Notification No. 33/2017 – Central Tax (Rate), dated 13th October, 2017
4 Notification No. 3/2018 – Central Tax (Rate), dated 25th January, 2018
5 Notification No. 15/2018 – Central Tax (Rate), dated 26th July, 2018
6 Notification No.29/ 2018- Central Tax (Rate), dated 31st December, 2018
7 Notification No. 5/2019 – Central Tax (Rate), dated 29th March, 2019
8 Notification No. 22/2019- Central Tax (Rate) Dated 30th September, 2019
B. List of Notifications issued from time to time related to RCM U/s. 9(4)
1. Notification No. 07/2019-Central Tax (Rate) dated 29th March, 2019
2. Notification No.24/2019 Central Tax (Rate) dated 30.09.2019
C. List of Notifications issued from time to time related to RCM U/s. 9(5)
1. Notification No. 17/2017-Central Tax (Rate) dt 28th June, 2017
2. Notification No. 23/2017-Central Tax(Rate) dated 22nd Aug, 2017

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9 Comments

    1. PARVEENMAHAJAN says:

      In 2016-17 GST was not applicable, If you say for 2017-18 liability to pay RCM from the date when it was become liable to pay with interest but input tax credit can not be availed as per my view.

    1. PARVEENMAHAJAN says:

      If Truck owner not covered under the definition of GTA then RCM not be applicable, RCM is applicable on GTA services under section 9(3).
      Meaning of GTA explained in Notification No.12/2017 Central Tax (Rate ) in (ze) “goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called;

  1. KN.MUTHIAH says:

    Highly informative article with all relevant notifications. You have said( From 13-10-2017 the registered persons were exempted from making payment of tax on reverse charge basis on supply of goods or services or both from the person who is not registered under the Act)) Thus,.when goods and services are received from unregistered suppliers no need to pay RCM by the recipient of such goods and services.
    When we receive goods through trucks of individual lorry owners who are not registered as GTA under GST,is it necessary to pay RCM on the freight paid by the receipient of goods.

    1. PARVEEN MAHAJAN says:

      GTA may be an individual person. Meaning of GTA explained in Notification No.12/2017 Central Tax (Rate ) in (ze) “goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called;
      If the person from whom service is received, is not covered under GTA and is not registered the RCM would not be applicable.
      At present RCM applicable only those goods or services which have been notified for either section for 9 (3) or for section 9 (4)

  2. KN.MUTHIAH says:

    RCM is said to have been kept under suspension. Is this suspension applicable to Goods Transporation freight paid to individual lorry owners who are not registered under GTA .Thus,the receipient of Transporation services from an individual lorry owner has to pay RCM at 5% on the freight paid by him or not.

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