Reverse Charge Mechanism

RCM on renting of Motor Vehicle-Differently decoded (Amended as on 31 Dec 2019)

Goods and Services Tax - HIRING/RENTING OF MOTOR VEHICLE UNDER REVERSE CHARGE 9(3) 1. Recently a new Notification no 22/2019 dated 30th Sep 2019 was introduced wherein Renting of Motor vehicle was made taxable under Reverse charge. But not all is renting and not all is taxable under RCM. Lets us find out: 2. Notif no : 22/2019 CGST (rate) […]...

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Reverse Charge Mechanism in GST Regime with Chart – Updated till date

Goods and Services Tax - The concept of reverse charge mechanism was introduced in erstwhile Service Tax laws. Generally, tax is payable by the person who provides Services but under reverse charge mechanism the liability to pay tax has shifted to recipient of Services. ...

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RCM on Renting of Motor Vehicle, confusion persists…

Goods and Services Tax - Basis recommendation by the GST council in its 37th meeting held on 20 September 2019, Central Board of Indirect Taxes and Customs (CBIC), had issued a notification to place supply of renting of motor vehicles under the gamut of reverse charge mechanism. The recommendation was specifically intended to cover only those supplies made by non...

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RCM under GST on Renting of Motor Vehicles

Goods and Services Tax - RCM on Renting of Motor Vehicles-- 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...

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RCM on Renting of Motor Vehicle : A Game Changer

Goods and Services Tax - On eve of New Year 2020 Government had again issued some new notifications. One of such notification issued is notification dealing with Renting of Motor Vehicle designed to carry passengers covered under Reverse Charge Mechanism (hereinafter referred as RCM). In Renting of Motor Vehicle designed to carry passengers, there are two options...

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CBIC issues 43 notifications on 30th September 2019

Goods and Services Tax - CBIC issues 43 notifications on 30th September 2019 to give effect to Recommendations made by GST Council in its 37th Meeting. Most of the changes are effective from 1st October 2019 and includes changes in Custom Law, CGST, IGST and UTGST Law. Changes includes changes in Rates on certain Products and Services, Applicability of Reverse [&...

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Implement workable reverse charge mechanism in Phases: ICAI

Goods and Services Tax - ICAI has submitted that the provisions for levy of taxes under the reverse charge mechanism applicable to a registered person, effecting an inward supply from an unregistered person, can be implemented in a phased manner and it also suggested that GST Council / Government may consider amending the law and enhance the knowledge of stakehol...

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RCM liability under service tax on freight charges

Nirmal Seeds Private Limited Vs The Commissioner of Central Excise (Bombay High Court) - It is the case of the Revenue that the appellant is reimbursing the freight amount to their consignees to the extent freight is paid by the consignee. Besides, it was also found that the appellant was also issuing credit notes for reimbursement of freight charges. Thus, the case of the Revenue is th...

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GST under reverse charge payable on Mining lease Charges paid to Govt.

In re JSW Steel Ltd. (GST AAR Karnataka) - The Applicant is liable to pay GST under reverse charge, for the payment made towards NMET and DMF, in light of Si. No. 5 of the Notification No. 13/2017- Central Tax (Rate) dated 28.06.2017....

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GST under RCM applicable on remuneration to Directors

In re M/s Alcon Consulting Engineers (India) Pvt. Ltd. (GST AAR Karnataka) - In re M/s Alcon Consulting Engineers (India) Pvt. Ltd. (GST AAR Karnataka) a) Whether the expenses incurred by the Staff members on behalf of the Company exceeding Rs.5000-00 a day and then reimbursed periodically are liable to tax  The amounts paid to the employees of the applicant company as reim...

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IGST under RCM on ocean freight in case of CIF basis contract

M/s M. K. Agro Tech Pvt. Ltd. (GST AAR Karnataka) - M/s M. K. Agro Tech Pvt. Ltd. (GST AAR Karnataka) Whether under Reverse Charge Mechanism, IGST should be paid by the importer on ocean freight on the case of CIF basis contract? In the instant case, the importer in India is liable to pay the tax under RCM as they are deemed to be the […]...

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IGST payable under RCM on import of Service by Govt for business

In re M/s. Directorate of Skill Development (GST AAR Madhya Pradesh) - In re M/s. Directorate of Skill Development (GST AAR Madhya Pradesh) If the service is imported for the purpose of business or commerce even by the Govt then exemption would not be available and Govt need to pay GST under Reverse Charge. This can be further substantiated as per Q No 14 of GST Sector...

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UTGST: RCM on renting of motor vehides – req

Notification No. 29/2019-Union Territory Tax (Rate) [G.S.R. 975(E).] - (31/12/2019) - Notification No. 29/2019-Union Territory Tax (Rate)- To amend notification No. 13/ 2017- Union Territory Tax (Rate) so as to notify certain services under reverse charge mechanism (RCM) as recommended by GST Council in its 38th meeting held on 18.12.2019. Government of India Ministry of Finance (Dep...

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Reverse Charge Mechanism (RCM) on renting of motor vehides – req

Circular No. 130/49/2019-GST - (31/12/2019) - Suppliers of service 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 have an option to pay GST either at 5% with limited ITC (of input services in the same line of business) or 12% with ful...

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IGST: New service under reverse charge mechanism

Notification No. 28/2019-Integrated Tax (Rate) [G.S.R. 973(E)] - (31/12/2019) - Notification No. 28/2019-Integrated Tax (Rate)– To amend notification No. 10/2017-Integrated Tax (Rate) so as to notify certain services under reverse charge mechanism (RCM) as recommended by GST Council in its 38th meeting held on 18.12.2019. Government of India Ministry of Finance (Departmen...

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New service under reverse charge mechanism | 38th GST Council meeting

Notification No. 29/2019- Central Tax (Rate) [G.S.R. 971(E).] - (31/12/2019) - Notification No. 29/2019-Central Tax (Rate)- To amend notification No. 13/2017- Central Tax (Rate) so as to notify certain services under reverse charge mechanism (RCM) as recommended by GST Council in its 38th meeting held on 18.12.2019. Government of India Ministry of Finance (Department of Revenu...

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UTGST: Govt notifies certain services under RCM wef 01.10.2019

Notification No. 22/2019-Union Territory Tax (Rate) [G.S.R. 738(E).] - (30/09/2019) - Seeks to amend notification No. 13/2017- Union Territory Tax (Rate) so as to notify certain services under reverse charge mechanism (RCM) as recommended by GST Council in its 37th meeting held on 20.09.2019 vide Notification No. 22/2019-Union Territory Tax (Rate) dated 30th September, 2019 Governme...

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Recent Posts in "Reverse Charge Mechanism"

RCM on renting of Motor Vehicle-Differently decoded (Amended as on 31 Dec 2019)

HIRING/RENTING OF MOTOR VEHICLE UNDER REVERSE CHARGE 9(3) 1. Recently a new Notification no 22/2019 dated 30th Sep 2019 was introduced wherein Renting of Motor vehicle was made taxable under Reverse charge. But not all is renting and not all is taxable under RCM. Lets us find out: 2. Notif no : 22/2019 CGST (rate) […]...

Read More

RCM liability under service tax on freight charges

Nirmal Seeds Private Limited Vs The Commissioner of Central Excise (Bombay High Court)

It is the case of the Revenue that the appellant is reimbursing the freight amount to their consignees to the extent freight is paid by the consignee. Besides, it was also found that the appellant was also issuing credit notes for reimbursement of freight charges. Thus, the case of the Revenue is that the freight is ultimately paid by the...

Read More

Reverse Charge Mechanism in GST Regime with Chart – Updated till date

The concept of reverse charge mechanism was introduced in erstwhile Service Tax laws. Generally, tax is payable by the person who provides Services but under reverse charge mechanism the liability to pay tax has shifted to recipient of Services. ...

Read More

RCM on Renting of Motor Vehicle, confusion persists…

Basis recommendation by the GST council in its 37th meeting held on 20 September 2019, Central Board of Indirect Taxes and Customs (CBIC), had issued a notification to place supply of renting of motor vehicles under the gamut of reverse charge mechanism. The recommendation was specifically intended to cover only those supplies made by non...

Read More

RCM under GST on Renting of Motor Vehicles

RCM on Renting of Motor Vehicles-- 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...

Read More

RCM on Renting of Motor Vehicle : A Game Changer

On eve of New Year 2020 Government had again issued some new notifications. One of such notification issued is notification dealing with Renting of Motor Vehicle designed to carry passengers covered under Reverse Charge Mechanism (hereinafter referred as RCM). In Renting of Motor Vehicle designed to carry passengers, there are two options...

Read More

Clarification on GST on Rent a Cab & Annual Return due date extension

Clarification on GST on Rent a Cab and Extension of due date for Annual Return for 2017-18 Considering the technical difficulty being faced by the taxpayers, the GST Council had decided to extend the due date for furnishing Annual Report for the year 2017-18 to 31st January 2020. CBIC has issued Order No 10/2019 – […]...

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UTGST: RCM on renting of motor vehides – req

Notification No. 29/2019-Union Territory Tax (Rate) [G.S.R. 975(E).] (31/12/2019)

Notification No. 29/2019-Union Territory Tax (Rate)- To amend notification No. 13/ 2017- Union Territory Tax (Rate) so as to notify certain services under reverse charge mechanism (RCM) as recommended by GST Council in its 38th meeting held on 18.12.2019. Government of India Ministry of Finance (Department of Revenue) New Delhi Notificati...

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Reverse Charge Mechanism (RCM) on renting of motor vehides – req

Circular No. 130/49/2019-GST (31/12/2019)

Suppliers of service 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 have an option to pay GST either at 5% with limited ITC (of input services in the same line of business) or 12% with full ITC....

Read More

IGST: New service under reverse charge mechanism

Notification No. 28/2019-Integrated Tax (Rate) [G.S.R. 973(E)] (31/12/2019)

Notification No. 28/2019-Integrated Tax (Rate)– To amend notification No. 10/2017-Integrated Tax (Rate) so as to notify certain services under reverse charge mechanism (RCM) as recommended by GST Council in its 38th meeting held on 18.12.2019. Government of India Ministry of Finance (Department of Revenue) Notification No. 28/2019- ...

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