List of Services Under Reverse Charge as Approved By GST Council. Revised and upto date list of services covered. Categories of supply of services where GST is to be paid on reverse charge basis. List of Services under Reverse Charge Mechanism (RCM). Notified Goods and Services Under Reverse Charge in GST Acts, GST Reverse Charge Chart in PDF Format. GST Reverse Charge Chart in PDF.
We have compiled two notifications, in relation to Reverse Charge mechanism in the GST Acts, issued by the Central Government on the recommendation of the GST Council. One is notifying certain goods on supply of which tax shall be borne by the recipient of such goods and the other is notifying certain services on supply of which tax shall be borne by the recipient of such services.
List of Goods under RCM in GST
Following goods have been notified by the Central Government where the recipient of goods shall be liable to pay GST under RCM:-
|Sr. No.||Description of supply of Goods||Supplier of Goods||Recipient of Goods|
|1||Cashew nuts (not shelled or peeled)||Agriculturist||Any registered person|
|2||Bidi Wrapper Leaves (tendu), Tobacco Leaves||Agriculturist||Any registered person|
|3||Silk Yarn||Manufacturer of silk yarn from raw silk or silk worm cocoons||Any registered person|
|4||Lottery||State Government, Union Territory or local authority||Lottery distributor or selling agent|
|5||Raw Cotton||Agriculturist||Any registered person|
|6||Used vehicles, seized and confiscated goods, old and used goods, waste and scrap||Central Government, State Government, Union Territory or local authority||Any registered person|
|7||Purchase of priority sector lending certificate||Registered person||Any registered person|
List of Services Under RCM
|Sr. No.||Description of supply of services||Supplier of services||Recipient of services||GST Rates|
|1||Goods Transport Agency (GTA) services by road||Goods Transport Agency||Any factory, society, cooperative society, registered person under GST, body corporate, partnership firm including AOP, casual taxable person located in the taxable territory||5%|
|2||Legal services provided directly or indirectly, by advocate including a senior advocate or firm of advocates||An individual advocate including a senior advocate or firm of advocates||Any business entity located in the taxable territory shall be liable under reverse charge @ 18%.||18%|
|3||Services provided by an arbitral tribunal to a business entity||An Arbitral Tribunal||Any business entity located in the taxable territory.||18%|
|4||Sponsorship services provided to any Body corporate or partnership firm||Any person||Any Body Corporate or partnership firm located in taxable territory.||18%|
|5||Services supplied by the Central Government, State Government, Union Territory or local authority to a business entity excluding:
||Central or State Government, Union Territory, Local Authority||Any Business Entity located in the taxable territory.||18%|
|5A||Renting of immovable property services by Central Government, State Government, Union Territory or Local Authority to a person registered under GST||Central or State Government, Union Territory, Local Authority||Any person registered under GST||18%|
|5B||Transfer of development rights or Floor Space Index (FSI) (including additional FSI) for construction of a project||Any Person||Promoter||18%|
|Note: Notification No. 6/2019- CT (Rate) w.e.f. 01-04-2019: – GST on development rights/ FSI to be paid by promoter w.e.f. 01-04-2019 under reverse charge.|
|5C||Long Term Lease (30 years or more) by any person against consideration in the form of upfront amount (called as premium, salami, cost, price, development charges or by any other name) and/ or periodic rent for construction of a project by a promoter.||Any Person||Promoter||18%|
|Note: Notification No. 6/2019- CT (Rate) w.e.f. 01-04-2019: – GST on long term lease by any person for construction project by a promoter shall be payable under reverse charge w.e.f. 01-04-2019 @18%.|
|6||Services supplied by a director of a company or a body corporate to the said company or body corporate||A director||The company or body corporate located in the taxable territory.||18%|
|7||Services by an insurance agent to any person carrying on insurance business||Insurance Agent||Any person carrying on insurance business||18%|
|8||Recovery Agent Services to a bank or financial institution or NBFC||Recovery Agent||Bank or Financial Institution or NBFC||18%|
|9||Copyright services by a music composer, photographer, artist or like relating to original dramatic, musical or artistic works to a music company, producer or the like||Music Composer, Photographer, artist or the like||Music Company, producer or the like located in the taxable territory||12%|
|9A||Supply of services by an author by way of transfer or permitting the use or enjoyment of a copyright covered under the Copyright Act, 1957 relating to original literary works to a publisher||Author of original literary work||Publisher located in the taxable territory.||12%|
|10||Supply of services by the members of Overseeing committee to RBI||Members of Overseeing Committee constituted by RBI||Reserve Bank of India||18%|
|11||Supply of services by individual Direct Selling Agents (DSA) other than a body corporate, partnership or LLP to a bank or NBFC||Individual DSA other than a body corporate, partnership or LLP to a bank or NBFC||Banking company or NBFC located in taxable territory||18% Inserted by Notification No. 15/2018- CT (Rate) dated 26.07.2018|
|12||Services provided by a business facilitator to a banking company||Business Facilitator||Banking company located in taxable territory||18% Inserted by Notification No. 29/2018- CT (Rate) dated 31.12.2018|
|13||Services provided by an agent of business correspondent to business correspondent||An agent of business correspondent||Business Correspondent located in taxable territory||18% Notification No. 29/2018- CT (Rate) dated 31.12.2018|
|14||Security services (by way of supply of security personnel)||Any person other than body corporate||Registered Person||18% Notification No. 29/2018- CT (Rate) dated 31.12.2018|
Nothing contained in this entry shall apply to: –
|15||Services provided 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||Any person other than body corporate, who supplies the service to a body corporate and does not issue an invoice charging CGST @ 6% plus SGST to the service recipient||Any body corporate located in the taxable territory||5%|
|Note: The above entry has been inserted by Notification No. 22/2019- CT (Rate) dated 30.09.2019. It has been further amended Notification No. 29/2019- CT(Rate) dated 31.12.2019.|
|16||Services of lending of securities under Securities Lending Scheme, 1997 of SEBI||Lender i.e. a person who deposits the securities registered in his name or in the name of any other person duly authorised on his behalf with an approved intermediary for the purpose of lending under the scheme of SEBI||Borrower i.e. a person who borrows the securities under the scheme through an approved intermediary of SEBI||18% Notification No. 22/2019- CT (Rate) dated 30.09.2019|
All the goods and services notified for RCM purposes have also been notified under IGST Act. Further, the following additional services are also notified under IGST Act for levy of IGST under reverse charge: –
|Nature of supply of services||Supplier of services||Recipient of services|
|Services supplied by a person located in non-taxable territory by way of transportation of goods by vessel from a place outside India up to the customs station of clearance in India||A person located in the non-taxable territory||Importer located in the taxable territory|
|Any service supplied by any person located in a non-taxable territory to any person other than non-taxable online recipient||Any person located in a non-taxable territory||Any person located in the taxable territory other than non-taxable online recipient|
(a)The person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this notification.
(b) “Body Corporate” has the same meaning as assigned to it in clause (11) of section 2 of the Companies Act, 2013.
(c) the business entity located in the taxable territory who is litigant, applicant or petitioner, as the case may be, shall be treated as the person who receives the legal services for the purpose of this notification. (
d) the words and expressions used and not defined in this notification but defined in the Central Goods and Services Tax Act, the Integrated Goods and Services Tax Act, and the Union Territory Goods and Services Tax Act shall have the same meanings as assigned to them in those Acts.
(e) A “Limited Liability Partnership” formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (6 of 2009) shall also be considered as a partnership firm or a firm.
(f) “insurance agent” shall have the same meaning as assigned to it in clause (10) of section 2 of the Insurance Act, 1938 (4 of 1938).
(g) “renting of immovable property” means allowing, permitting or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property.’.
(h) Provisions of the Notification No. 29/2018- Central Tax (Rate), in so far as they apply to the Central Government and State Governments, shall also apply to the Parliament and State Legislatures
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