Reverse Charge Mechanism

RCM on Ocean freight- Part 2- FOB contracts of Import

Goods and Services Tax - This part 2 will deal with FOB contracts of import, in which Freight component is separate and identifiable, as it is not included in the value of goods. The Importer pays the freight to the Shipping Line either directly or through his appointed CHA (Clearing House Agent), which is subject to RCM u/s 5(3) of the IGST Act, 2017....

Read More

GST RCM on Renting of Vehicle

Goods and Services Tax - GST RCM on Renting of Vehicle Notification No. 21/2019 dated 30/09/2019 under IGST Act, 2019 applicable from 01/10/2019 Notification No. 22/2019 dated 30/09/2019 under CGST Act, 2019 applicable from 01/10/2019 Notification……. Services provided by way of renting of a motor vehicle provided to a body corporate Any person other t...

Read More

No RCM Mechanism applicable on import of services if location of supplier is from a fixed establishment

Goods and Services Tax - Question on which AAR sought and discussions made -The applicant sought ruling on requirement of registration under Odisha Goods and Services Act, 2017 & CGST ACT, 2017 for the consultancy services provided to Odisha Power Transmission Corporation Limited  -Whether GST is payable on RCM basis by OPTCL in relation to import of service...

Read More

Consultancy service provided by Japan based company, having fixed establishment in India is not liable for RCM under  ‘import of service’

Goods and Services Tax - The Hon’ble AAR Odisha, in the matter of Tokyo Electric Power Co. [Order No.02/Odisha-AARJ2020-21 dated November 19, 2020] held that supply of consultancy service to an Indian entity Odisha Power Transmission Corporation Limited (OPTCL) is not import of service in terms of Section 2(11) of the Integrated Goods and Services Tax Act, 2017...

Read More

Lease of Land and issues in GST?

Goods and Services Tax - Article contains Important Definitions related to Lease of Land and issues in GST, Schedule entries related to  Lease of Land, Reverse Charge Mechanism on Land Lease, Important Judgement and AAR related to GST on Land Lease with FAQ on Issues like: What is the difference between the lease of Land v/s Building?, What is a […]...

Read More

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 [&...

Read More

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...

Read More

No RCM Mechanism applicable on import of services if location of supplier is from a fixed establishment

Question on which AAR sought and discussions made -The applicant sought ruling on requirement of registration under Odisha Goods and Services Act, 2017 & CGST ACT, 2017 for the consultancy services provided to Odisha Power Transmission Corporation Limited  -Whether GST is payable on RCM basis b...

Read More

GST under RCM on salary to Directors- AAR allowed application withdrawal

In re Man Structurals (P) Ltd. (GST AAR Rajasthan) - In re Man Structurals (P) Ltd. (GST AAR Rajasthan) Whether GST is payable under Reverse Charge Mechanism (RCM) the salary paid to Directors of the company who is paid salary as per employment contract? We observe that Shri Madhu Sudan Sharma, authorized representative of the applicant, submitted a l...

Read More

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...

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) o...

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 m...

Read More

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....

Read More

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...

Read More

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...

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 (Departmen...

Read More

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...

Read More

Recent Posts in "Reverse Charge Mechanism"

RCM on Ocean freight- Part 2- FOB contracts of Import

This part 2 will deal with FOB contracts of import, in which Freight component is separate and identifiable, as it is not included in the value of goods. The Importer pays the freight to the Shipping Line either directly or through his appointed CHA (Clearing House Agent), which is subject to RCM u/s 5(3) of the IGST Act, 2017....

Read More

GST RCM on Renting of Vehicle

GST RCM on Renting of Vehicle Notification No. 21/2019 dated 30/09/2019 under IGST Act, 2019 applicable from 01/10/2019 Notification No. 22/2019 dated 30/09/2019 under CGST Act, 2019 applicable from 01/10/2019 Notification……. Services provided by way of renting of a motor vehicle provided to a body corporate Any person other t...

Read More

No RCM Mechanism applicable on import of services if location of supplier is from a fixed establishment

02/Odisha-AAR/2020-21 dated 01.10.2020 10/01/2020

Question on which AAR sought and discussions made -The applicant sought ruling on requirement of registration under Odisha Goods and Services Act, 2017 & CGST ACT, 2017 for the consultancy services provided to Odisha Power Transmission Corporation Limited  -Whether GST is payable on RCM basis by OPTCL in relation to import of service...

Read More

Consultancy service provided by Japan based company, having fixed establishment in India is not liable for RCM under  ‘import of service’

The Hon’ble AAR Odisha, in the matter of Tokyo Electric Power Co. [Order No.02/Odisha-AARJ2020-21 dated November 19, 2020] held that supply of consultancy service to an Indian entity Odisha Power Transmission Corporation Limited (OPTCL) is not import of service in terms of Section 2(11) of the Integrated Goods and Services Tax Act, 2017...

Read More

Lease of Land and issues in GST?

Article contains Important Definitions related to Lease of Land and issues in GST, Schedule entries related to  Lease of Land, Reverse Charge Mechanism on Land Lease, Important Judgement and AAR related to GST on Land Lease with FAQ on Issues like: What is the difference between the lease of Land v/s Building?, What is a […]...

Read More

Fundamental of reverse charge under GST

Meaning of reverse charge:  As per Section 2(98) of the CGST Act ‘reverse charge’ means the liability to pay tax by the recipient of supply of services  or goods instead of supplier of such services or goods under sub-section (3) or sub-section (4) or under sub-section (3) or sub-section (4) of section 5 of IGST […]...

Read More

Eligibility of ITC under RCM Even after expiry of Time Limit

Eligibility of Input Tax Credit (ITC) under RCM on supply received from unregistered persons Even after Expiry of Time Limit Specified in Section 16(4):- There is a lot of confusion around sec 16(4) and there are many taxpayers who are suffering from lapses of ITC due provision of Sec 16(4) especially in the case of […]...

Read More

Common errors that a registered person must avoid while submitting GST return

Even after 3 years of introduction of GST Act, people registered under GST are making many errors while filing their GST returns. It is very important to file GST returns with the most accuracy to avoid litigation from the department. A wrong filing in GST return can impose a huge amount of penalty and interest […]...

Read More

Will Remuneration To Directors Attract GST Under RCM?

WILL THE REMUNERATION PAID BY A COMPANY TO ITS DIRECORS ATTRACT GST UNDER THE REVERSE CHARGE MECHANISM? 1. PECULIAR LEGAL FICTION IN THE GST LAW This was there in the erstwhile Service Tax Regime also. The Principle is simple—“If you are unable to tax a category of persons who supply the services, call the poor […]...

Read More

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....

Read More

Browse All Categories

CA, CS, CMA (5,342)
Company Law (7,094)
Custom Duty (8,393)
DGFT (4,505)
Excise Duty (4,468)
Fema / RBI (4,613)
Finance (4,880)
Income Tax (36,524)
SEBI (3,895)
Service Tax (3,695)

Search Posts by Date

April 2021
M T W T F S S
 1234
567891011
12131415161718
19202122232425
2627282930