Seeks to amend notification No. 13/2017- Central Tax (Rate) so as to specify services to be taxed under Reverse Charge Mechanism (RCM) as recommended by Goods and Services Tax Council in its 31st meeting held on 22.12.2018.

Following services brought under RCM mechanism:

  • Services provided by business facilitator (BF) to a banking company
  • Services provided by an agent of business correspondent (BC) to business correspondent (BC)
  • Security services (services provided by way of supply of security personnel) provided to a registered person

Except those to Govt/ agencies which are registered only for TDS purposes

Government of India
Ministry of Finance
(Department of Revenue)

Notification No. 29/2018- Central Tax (Rate)

New Delhi, the 31St December, 2018

G.S.R. 1276(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 makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.13/2017- Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 692(E), dated the 28th June, 2017, namely:-

In the said notification,‑
(i) in the Table,‑

(a) against serial number 1, in the entry in column (2), after item (g), the following proviso shall be inserted, namely: ‑

“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.”;

(b) after serial number 11 and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: –

(1) (2) (3) (4)
“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 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 under section 10 of the said Act.

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

(ii) in the Explanation, after clause (g), the following clause shall be inserted, namely:‑
“(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.”.
2. This notification shall come into force on the 1″ day of January, 2019.
[F. No. 354/428/2018- TRU]
(Gunjan Kumar Verma)
Under Secretary to the Government of India

Note: -The principal notification No. 13/2017 – Central Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 692 (E), dated the 28th June, 2017 and was last amended by notification No. 15/2018 – Central Tax (Rate), dated the 26th July, 2018 vide number G.S.R. 679(E), dated the 26th July, 2018.

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