Reverse Charge Mechanism

Reverse Charge Liability under GST Not Paid In 2018-19

Goods and Services Tax - Can the registered person avail Input Tax Credit for reverse charge liability pertaining to 2018-19 which was paid in the year other than 2018-19? To understand this query, we take one example as follow: A person availed advocate services in the year 2018-19 and paid advocate fee Rs.2 lakh in the month of March of […]...

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Reverse Charge Mechanism on Renting of Residential & Commercial Dwelling

Goods and Services Tax - Notification No. 05/2022- Central Tax (Rate) | Dated: 13th July, 2022 As per the above said notification issued by GST council which has came into effect from 18th July, 2022, the transaction of renting of residential or commercial dwelling will be as follows: For understanding we taken below examples: Transaction 1: There are two parties...

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Case study on RCM on Renting of Residential Dwelling Unit

Goods and Services Tax - Facts of the case: Mr. Krsna is registered in GST in Delhi dealing in the supply of consultancy services. He takes one residential property on rent in Gurugram, Haryana. Mr. Krsna uses the property partially for residential and partially for official purposes. He provides consultancy sitting at his Gurugram residence also. The following q...

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RCM under GST on Security, Advocate, Transport & Residential Rent Services

Goods and Services Tax - RCM under GST on Security Service, Goods Transport Agency (GTA), Advocate Service and Residential Property Taken on Rent....

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In depth study on RCM Liability for Guarantee given by Directors to Company

Goods and Services Tax - Personal guarantee executed by director for term loan or cash credit facilities enjoyed by the Company shall not be chargeable to GST, if it is in the nature of a service provided by an employee to an employer in the course of or in relation to employment. Therefore, in this case there is no tax payable under Reverse Charge Mechanism by c...

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Representation on RCM on Residential Property, GTA Declaration & GST Appeal

Goods and Services Tax - Maharashtra Tax Practitioners’ Association has made a representation on Confusion related to Levy of GST under RCM on Residential Property, Rejection of Appeal for non-submission of Certified copy of order from Authorities and Issues related to GTA Time Limit Of 16.08.2022 For Submission Of Annexure V. MAHARASHTRA TAX PRACTITIONERS...

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माइनिंग सेक्टर पर RCM टेक्स की डिमांड के सम्बन्ध में राहत दिलवाने के लिए प्रार्थना पत्र

Goods and Services Tax - उपरोक्त विषय में निवेदन है कि इस समय माइनिंग इंडस्ट्री पर RCM = REVERSE CHARGE MECHNISM, जो कि उनके द्वारा राज्य सरकार को भुगतान की गई रॉयल्टी से सम्...

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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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GST: Security services by LLP to any registered person are not covered by RCM

In re AS&D Enterprise LLP (GST AAR Haryana) - AAR Haryana held that that Security services provided by LLP to any registered person are not covered by Reverse Charge Mechanism (RCM) ...

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Service tax cannot be levied under RCM for letting out of residential property by Director to Company

Mec Shot Blasting Equipment Ltd. Vs Commissioner (CESTAT Delhi) - CESTAT held that service tax cannot be levied on the company for payment of rent to the director unless such premises are used for commercial purpose....

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RCM not applicable to daily wages, Labour Charges & Contract Labour

In re Sri Bhavani Developers (GST AAR Telangana) - In re Sri Bhavani Developers (GST AAR Telangana) Is RCM applicable to daily wages, Labour Charges and Contract Labour? The law regarding services by an employee to the employer in the course of or in relation to his employment enumerated in Schedule III to CGST Act, 2017 remains unchanged. Therefore...

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Cenvat credit of service tax paid under RCM eligible to manufacturer

G & G Ispat (P) Limited Vs Commissioner (CESTAT Delhi) - G & G Ispat (P) Limited Vs Commissioner (CESTAT Delhi) Appellant admittedly has paid the service tax chargeable from them under reverse charge mechanism, on 31.10.2015, which was reflected in the return filed for the period 2014-15, which was filed on 21.01.2016. Further, appellant has also info...

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RCM would not lead to double taxation for non-strict adherence to ratio

Vice Chairman Settlement Commission Vs Zyeta Interiors Pvt. Ltd (Karnataka High Court) - Vice Chairman Settlement Commission Vs Zyeta Interiors Pvt. Ltd (Karnataka High Court) Whatever the ratio, the tax in its entirety has reached the hands of the ex-chequer. Merely for the reason that there was no strict adherence to the ratio as envisaged during the relevant point of time for payme...

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CGST payable under RCM on essential oils other than those of citrus fruit wef 01.10.2021

Notification No. 10/2021-Central Tax (Rate) [G.S.R. 695(E).] - (30/09/2021) - CBIC notifies essential oils other than those of citrus fruit  as goods on which CGST is payable under Reverse Charge Mechanism (RCM) with effect from 1st day of October, 2021 to implement recommendations made by GST Council in its 45th meeting held on 17.09.2021. Notification No.10/2021- Central T...

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UTGST payable under RCM on essential oils other than those of citrus fruit wef 01.10.2021

Notification No. 10/2021-Union territory Tax (Rate) [G.S.R. 705(E).] - (30/09/2021) - CBIC notifies essential oils other than those of citrus fruit  as goods on which UTGST is payable under Reverse Charge Mechanism (RCM) with effect from 1st day of October, 2021 to implement recommendations made by GST Council in its 45th meeting held on 17.09.2021. Notification No. 10/2021- Union T...

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GST paid under Reverse charge is eligible for certification

File No. REV03-14023/3/2018-AC - ENFT - CCT - (27/08/2020) - Andhra Pradesh: Clarification on whether the eligibility of tax paid under Reverse charge, under GST is eligible for certification of payment of Tax for the purpose of reimbursement under Industrial Investment Promotion Policy, 2015-20....

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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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Recent Posts in "Reverse Charge Mechanism"

Reverse Charge Liability under GST Not Paid In 2018-19

Can the registered person avail Input Tax Credit for reverse charge liability pertaining to 2018-19 which was paid in the year other than 2018-19? To understand this query, we take one example as follow: A person availed advocate services in the year 2018-19 and paid advocate fee Rs.2 lakh in the month of March of […]...

Read More

Reverse Charge Mechanism on Renting of Residential & Commercial Dwelling

Notification No. 05/2022- Central Tax (Rate) | Dated: 13th July, 2022 As per the above said notification issued by GST council which has came into effect from 18th July, 2022, the transaction of renting of residential or commercial dwelling will be as follows: For understanding we taken below examples: Transaction 1: There are two parties...

Read More

GST: Security services by LLP to any registered person are not covered by RCM

In re AS&D Enterprise LLP (GST AAR Haryana)

AAR Haryana held that that Security services provided by LLP to any registered person are not covered by Reverse Charge Mechanism (RCM) ...

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Case study on RCM on Renting of Residential Dwelling Unit

Facts of the case: Mr. Krsna is registered in GST in Delhi dealing in the supply of consultancy services. He takes one residential property on rent in Gurugram, Haryana. Mr. Krsna uses the property partially for residential and partially for official purposes. He provides consultancy sitting at his Gurugram residence also. The following q...

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RCM under GST on Security, Advocate, Transport & Residential Rent Services

RCM under GST on Security Service, Goods Transport Agency (GTA), Advocate Service and Residential Property Taken on Rent....

Read More

In depth study on RCM Liability for Guarantee given by Directors to Company

Personal guarantee executed by director for term loan or cash credit facilities enjoyed by the Company shall not be chargeable to GST, if it is in the nature of a service provided by an employee to an employer in the course of or in relation to employment. Therefore, in this case there is no tax payable under Reverse Charge Mechanism by c...

Read More

Representation on RCM on Residential Property, GTA Declaration & GST Appeal

Maharashtra Tax Practitioners’ Association has made a representation on Confusion related to Levy of GST under RCM on Residential Property, Rejection of Appeal for non-submission of Certified copy of order from Authorities and Issues related to GTA Time Limit Of 16.08.2022 For Submission Of Annexure V. MAHARASHTRA TAX PRACTITIONERS...

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GST on Rent of Residential Dwelling

As per sub-section (1) of section 11 of Central Goods and Services Tax Act, 2017, the services by way of renting of residential dwelling for use as residence (under Heading 9963 or Heading 9972) were exempt under GST. With Effect From 18.7.2022. The Central Government has issued a Notification (04/2022- Central Tax (Rate) dated 13.7.2022,...

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GST rate on Works Contract Services & RCM on GTA/residential dwelling units

GST rate on Works Contract Services with effect from 18th July, 2022 along with Changed Provisions pertaining to RCM on GTA and Provisions relating to RCM on residential dwelling units WORK CONTRACT SERVICES w.e.f. 18.07.2022 vide notification no. 03/2022-Central Tax (rate) dated 13.07.2022. Sl. No. Chapter, Section or Heading Description...

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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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