Reverse Charge Mechanism

ITC reversal for GST payable under RCM

CA, CS, CMA - Section 17(3) of the CGST Act requires reversal of input tax credit where input and input service is used for making exempt supplies. As per section 17(3) of CGST Act, the value of exempt supply shall include Supply where GST is payable on reverse charge basis – The supplier need to reverse input tax credit as he is not liable to pay t...

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GST-RCM (Reverse Chage Mechanism) updated comprehensive list

CA, CS, CMA - IN GST regime, under RCM (Reverse charge mechanism), for supply of following services as in the table below has been notified, the GST payment of which is on the recipient of services, instead of supplier of service. For ease of understanding, updated comprehensive list is appended with notifications for amendment/insertion:- S.No. Catego...

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Reverse Charge Mechanism (‘RCM’) in case of purchase from unregistered supplier

CA, CS, CMA - The provision that has gathered maximum attention for its ability to create significant stress and nuisance would clearly be Section 9(4) of the Central Goods and Services Tax Act, 2017 (‘CGST Act’). Before we go to that, we should understand Reverse Charge Mechanism. Reverse Charge Mechanism (RCM). Normally, the supplier of goods or ...

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Advance Ruling | Reverse Charge Mechanism | Section 9(3) | CGST Act 2017

CA, CS, CMA - Whether the applicant/importer is again required to pay IGST on the component of ocean freight under RCM mechanism on deemed amount which will amount double taxation of IGST on the deemed component of ocean freight of the imported goods?...

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Reverse Charge Mechanism on Goods & Services under GST

CA, CS, CMA - Generally, the supplier of goods or services is liable to pay GST. However, in specified cases like imports and other notified supplies, the liability may be cast on the recipient under the reverse charge mechanism. Reverse Charge means liability to pay the tax is on the person receiving goods/services instead of the person supplying the ...

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CBIC issues 43 notifications on 30th September 2019

CA, CS, CMA - 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

CA, CS, CMA - 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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Services rendered by GTA liable to GST under RCM: Consignment note not must

In re Uttarakhand Forest Development Corporation (GST AAR Uttarakhand) - In re Uttarakhand Forest Development Corporation (GST AAR Uttarakhand) As per the provisions of section 9(3) of Act, the Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge...

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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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Remuneration to director attracts GST under RCM

In re Clay Crafts India Pvt. Ltd. (GST AAR Rajasthan) - In re Clay Crafts India Pvt. Ltd. (GST AAR Rajasthan) Clay Craft India Pvt Ltd has filed an application before the Rajasthan bench of the AAR to sought clarification on  Whether GST is payable under Reverse Charge Mechanism (RCM) the salary paid to Director of the company who is paid salary as per ...

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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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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"

ITC reversal for GST payable under RCM

Section 17(3) of the CGST Act requires reversal of input tax credit where input and input service is used for making exempt supplies. As per section 17(3) of CGST Act, the value of exempt supply shall include Supply where GST is payable on reverse charge basis – The supplier need to reverse input tax credit as he is not liable to pay t...

Read More

GST-RCM (Reverse Chage Mechanism) updated comprehensive list

IN GST regime, under RCM (Reverse charge mechanism), for supply of following services as in the table below has been notified, the GST payment of which is on the recipient of services, instead of supplier of service. For ease of understanding, updated comprehensive list is appended with notifications for amendment/insertion:- S.No. Catego...

Read More

Reverse Charge Mechanism (‘RCM’) in case of purchase from unregistered supplier

The provision that has gathered maximum attention for its ability to create significant stress and nuisance would clearly be Section 9(4) of the Central Goods and Services Tax Act, 2017 (‘CGST Act’). Before we go to that, we should understand Reverse Charge Mechanism. Reverse Charge Mechanism (RCM). Normally, the supplier of goods or ...

Read More

Advance Ruling | Reverse Charge Mechanism | Section 9(3) | CGST Act 2017

Whether the applicant/importer is again required to pay IGST on the component of ocean freight under RCM mechanism on deemed amount which will amount double taxation of IGST on the deemed component of ocean freight of the imported goods?...

Read More

Reverse Charge Mechanism on Goods & Services under GST

Generally, the supplier of goods or services is liable to pay GST. However, in specified cases like imports and other notified supplies, the liability may be cast on the recipient under the reverse charge mechanism. Reverse Charge means liability to pay the tax is on the person receiving goods/services instead of the person supplying the ...

Read More

Reverse Charge Under (RCM) GST – Insights

Reverse charge means 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....

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How to Pay RCM In Real Estate for Purchase from Unregistered Suppliers

How to pay RCM by a Real Estate Promoter or developer on the shortfall in procurement from Registered Persons? Notification 03/2019 Central Tax (Rate)  dated 29th March 2019 brought in yet another major change which had a huge impact on the real estate sector. Though the buyers of the flat saw this as a huge […]...

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Weather rule 42 is to be applied while availing ITC of the tax paid under RCM

Rule 42 is considered as a one of the most complex concept in a GST. Rule 42 of the CGST Rules, 2017 envisages about the ‘manner of determination of input tax credit in respect of input and input service’. Before coming to the topic let’s take a brief of the roots. Section 17(1) of the […]...

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Reverse Charge Mechanism in Goods and Services Tax

◊ BACKGROUND OF REVERSE CHARGE MECHANISM ♦ Reverse Charge Mechanism was first introduced in Service Tax Law. ♦ Now, the Government has incorporated RCM in GST. ♦ Government has notified not only supply of certain services but also supply of certain goods under RCM. ◊ OBJECTIVE OF REVERSE CHARGE MECHANISM ♦ Safeguard the intere...

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Services rendered by GTA liable to GST under RCM: Consignment note not must

In re Uttarakhand Forest Development Corporation (GST AAR Uttarakhand)

In re Uttarakhand Forest Development Corporation (GST AAR Uttarakhand) As per the provisions of section 9(3) of Act, the Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such [&hellip...

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