Reverse Charge Mechanism

GST Under RCM on Renting of Motor Vehicle

Goods and Services Tax - The problem was arising for the small taxpayers who supposed to deposit the GST amount immediately on account of supply of service and the payment for the same has been received by them after 6 months or even more in some cases. It becomes very difficult for the small operators to pay the tax amount […]...

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RCM on Security Services under GST from 1st January 2019

Goods and Services Tax - GST on security services was applicable from 1st of July 2017 on forward charge but it has been brought under Reverse Charge Mechanism(RCM) from 1st January 2019 based on Notification No. 29/2018- Central Tax (Rate), dated 31st December, 2018...

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List of goods and services under reverse charge as on 01/03/2020

Goods and Services Tax - Article provides List of goods and services under Reverse Charge Mechanism (RCM) under GST Regime as on 01/03/2020 alongwith date from which the same is under RCM. For Goods S. No. Particular Effective date 1. Cashew nuts, not shelled or peeled 01/07/2017 2. Bidi wrapper leaves (tendu) 01/07/2017 3. Tobacco leaves 01/07/2017 4. Silk yarn ...

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All about Section 9(4) of CGST Act, 2017 (RCM)

Goods and Services Tax - Section 9(4) of CGST Act, 2017 As we all know Liability to Pay tax by a Recipient under Reverse Charge Mechanism is governed by Sections 9(3) and Section 9(4) of the Central Goods and Service Tax Act, 2017. At the very beginning Section 9(4) of The Central Goods and Services Tax Act, 2017 was : […]...

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Is a person supplying only Exempt Goods liable to pay GST under Reverse Charge?

Goods and Services Tax - In order to get clarity regarding this concept we need to go through registration provisions under CGST Act. Section 22 of the CSGT Act (PERSON LIABLE FOR REGISTRATION) – It provides that every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where [&hell...

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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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IGST paid under RCM eligible for ITC

In re Fom Aluminium Machines Pvt. Ltd. (GST AAR Karnataka) - In re Fom Aluminium Machines Pvt. Ltd. (GST AAR Karnataka) The third question which reads as ‘Is IGST paid under RCM eligible for ITC?’ The levy of IGST is only on the inter-state supplies and importation of goods/services is treated as inter-state supply, in terms of Section 7(2)/7(4) o...

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Cenvat Credit can be utilised for payment of Service Tax on reverse charge basis

Sahara India TV Network Vs C.C.G.ST. (CESTAT Mumbai) - The issue to be decided is Whether the Appellant i.e. the service recipient could utilize Cenvat credit of Central Excise duty paid on inputs, for payment of service tax on services viz.Management, Maintenance or Repair, Copyright and Advertising, received by them from abroad, under reverse charge m...

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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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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"

GST Under RCM on Renting of Motor Vehicle

The problem was arising for the small taxpayers who supposed to deposit the GST amount immediately on account of supply of service and the payment for the same has been received by them after 6 months or even more in some cases. It becomes very difficult for the small operators to pay the tax amount […]...

Read More

RCM on Security Services under GST from 1st January 2019

GST on security services was applicable from 1st of July 2017 on forward charge but it has been brought under Reverse Charge Mechanism(RCM) from 1st January 2019 based on Notification No. 29/2018- Central Tax (Rate), dated 31st December, 2018...

Read More

IGST paid under RCM eligible for ITC

In re Fom Aluminium Machines Pvt. Ltd. (GST AAR Karnataka)

In re Fom Aluminium Machines Pvt. Ltd. (GST AAR Karnataka) The third question which reads as ‘Is IGST paid under RCM eligible for ITC?’ The levy of IGST is only on the inter-state supplies and importation of goods/services is treated as inter-state supply, in terms of Section 7(2)/7(4) of the IGST Act 2017 respectively. The [&...

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List of goods and services under reverse charge as on 01/03/2020

Article provides List of goods and services under Reverse Charge Mechanism (RCM) under GST Regime as on 01/03/2020 alongwith date from which the same is under RCM. For Goods S. No. Particular Effective date 1. Cashew nuts, not shelled or peeled 01/07/2017 2. Bidi wrapper leaves (tendu) 01/07/2017 3. Tobacco leaves 01/07/2017 4. Silk yarn ...

Read More

Cenvat Credit can be utilised for payment of Service Tax on reverse charge basis

Sahara India TV Network Vs C.C.G.ST. (CESTAT Mumbai)

The issue to be decided is Whether the Appellant i.e. the service recipient could utilize Cenvat credit of Central Excise duty paid on inputs, for payment of service tax on services viz.Management, Maintenance or Repair, Copyright and Advertising, received by them from abroad, under reverse charge mechanism?...

Read More

All about Section 9(4) of CGST Act, 2017 (RCM)

Section 9(4) of CGST Act, 2017 As we all know Liability to Pay tax by a Recipient under Reverse Charge Mechanism is governed by Sections 9(3) and Section 9(4) of the Central Goods and Service Tax Act, 2017. At the very beginning Section 9(4) of The Central Goods and Services Tax Act, 2017 was : […]...

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Is a person supplying only Exempt Goods liable to pay GST under Reverse Charge?

In order to get clarity regarding this concept we need to go through registration provisions under CGST Act. Section 22 of the CSGT Act (PERSON LIABLE FOR REGISTRATION) – It provides that every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where [&hell...

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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) […]...

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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 that the freight is ultimately paid by the...

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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. ...

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