UPDATED  REVERSE CHARGE MECHANISM FOR PAYMENT OF GST POST 01/01/2019

List Of Services for Which GST to Be Paid By Recipient of goods or services as on 01/01/2019 falling under section 9(3) of CGST Act 2017 is summarized below for ready reference.

[NOTE:- The table is prepared in simple words only for quick reference purpose and for all legal interpretations and for applicability to cases individually you are requested and advised to look into original Notification No. 13 dated 28/06/2017  as amended from time to time.]

  1. TABLE FOR CGST, SGST & IGST
Description of a service Supplier of Service Recipient of Service
In respect of supply of services by a goods transport agency (GTA) in respect of transportation of goods by road Goods Transport Agency Service (GTA) To be paid by any registered person under GST Act
2. Legal Services received from advocate. An Individual Advocate including a Senior Advocate Any business entity located in taxable territory
In respect of services supplied by an arbitral tribunal to a business entity. An Arbitral Tribunal Any business entity located in the taxable territory.
In respect of services provided by way of sponsorship to a body corporate or partnership firm.   Any Person Any body Corporate or Partnership firm located in the taxable territory.
In respect of services supplied by the Central Government, State Government, Union territory or local authority to a business entity, excludingRenting of Immovable Property;Services by way of Speed post, Express Parcel Post, Life Insurance and agency service provide to a person other Central or State government or local authorityServices in relation to an aircraft or a vessel inside or outside the precincts of a port or an airportTransport of goods or passengers     Central Government, State Government, Union territory or local authority     Any business entity located in the taxable territory
6. In respect of services supplied by a director of a company or a body corporate to the said company or the corporate body. A Director of a company or a body corporate. The company or body corporate located in Taxable Territory.
7. In respect of service supplied by an insurance agent to any person carrying on insurance business. An Insurance Agent. Any person carrying on Insurance business, located in the taxable territory.
8. In respect of services supplied by a recovery agent to a banking company or a financial institution or a non-banking financial company  A Recovery Agent. A Banking Company or a Financial Institution or a Non-Banking Financial Company, located in the taxable territory.
9. In respect of supply of service by an author, music composer, Photographer, artist or the like by way of transfer or permitting the use or enjoyment of a copyright covered under clause (a) of sub-section (1) of Section 13 of the Copyright Act, 1957 relating to original literary, dramatic, musical or artistic works to a publisher, music company, procedure or the like. Author or Music Composer, Photograp her, artist, or the like.  Publisher, Music Company, Producer or the like, located in the Taxable Territory.
10. In respect of Supply of services by the members of overseeing committee to Reserve Bank Of India. Member of Overseeing Committee constituted by the Reserve Bank Of India. Reserve Bank Of India.
11. Services Supplied by individual Direct Selling Agents (DSA’s) other than body corporate or Limited liability Partnership firm to banking or Non Banking Financial Company (NBFC’s). (Inserted vide Notification No. 15/2018 – CT(R) dated 26/07/2018) Individual Direct Selling Agents (DSA’s) other than body corporate or LLP. A banking or a non-banking financial company, located in the taxable territory.  
12. Services provided by Business facilitator (BF) to a banking company. Business facilitator (BF) A banking located in the taxable territory.
13. Services provided by an agent of business correspondent (BC) to Business Correspondent (BC) An agent of Business Correspondent (BC) A business correspondent located in the taxable territory.
14. Security Services (services provided by way of supply of security personnel) provided to a registered person:   Provided that nothing contained in this entry shall apply to, (i)(a) a Department or Establishment of the Central Government or State Government or Union Territory; or (b) Local Authority; (c) Governmental agencies; Which has taken registration under GST Act 2017 only for the purpose of deducting tax under section 51 of the act and not for making taxable supply of goods or services. Any person other than a Body Corporate A registered person located in the taxable territory. (Inserted vide Notification No. 29/2018 – CT(R) dated 31/12/2018)
  1. TABLE FOR IGST (RCM as per Notification No10/2017- IT(R) 28/06/2017 apart from one covered in above list, on which compulsory IGST will be charged under RCM)
Description of a service Supplier of Service Recipient of Service
   Any service supplied by any person who is located in a non-taxable territory to any person other than non-taxable online recipient. Any person located in non taxable Territory Any person located in the taxable territory other than non-taxable online recipient.
Ocean freight Charges A person located in non taxable Territory Importer, as defined in clause (26) of section 2 of the Customs Act, 1962(52 of 1962), located in the taxable territory.

Further we wish to communicate that in respect of all the above services received from a Un- Registered person, the recipient of services will be liable to make Reverse Charge Invoice as per provisions of Section 31(3)(f) read with section 9(3).

Regards,

Vinay S. Sejpal

Advocate

Leave a Reply

Your email address will not be published.