Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

GST Payable on Reverse Charge Basis [Section 9(3) of CGST Act, Section 5(3) of IGST Act and Section 7(3) of UTGST 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 goods or services or both

Further, all the provisions of the relevant Act shall apply to such recipient as if hc is the person liable for paying the tax in relation to the supply of such goods or services or both.

GST Payable on Reverse Charge Basis [Section 9(3) of CGST Act, Section 5(3) of IGST Act and Section 7(3) of UTGST Act]
GST Payable on Reverse Charge Basis [Section 9(3) of CGST Act, Section 5(3) of IGST Act and Section 7(3) of UTGST Act]

1. GST Payable on Reverse Charge Basis in respect of ‘Supply of Goods’ [Section 9(3) of CGST Act]

In respect of supply of the following Goods, the tax on such goods shall be paid on reverse charge basis by the recipient of such goods as specified in Column (2), (3) and (4) of the said Table:—

S. No. Description of Supply of
Goods
Supplier of Goods Recipient of Supply who has to pay tax on Reverse Charge Basis
(1) (2) (3) (4)
1. Cashew nuts, not shelled or peeled Agriculturist Any registered person
2. Bidi wrapper leaves (tendu) Agriculturist Any registered person
3. Tobacco leaves Agriculturist Any registered person
4. Silk yarn Any person who manufactures silk yarn from raw silk or silk worm cocoons for supply of silk yarn Any registered person
4A. Raw Cotton Agriculturist Any registered person
5. Supply of Lottery. State Government. Union Territory or any local authority Lottery distributor or selling agent

Explanation.—For the purposes of this entry. lottery distributor or selling agent has the same meaning as assigned to it in clause (c) of Rule 2 of the Lotteries (Regulation) Rules. 2010. made under the

6. Used vehicles, seized and confiscated goods, old and used goods, waste and scrap Central Government, State Government, Union territory or a local authority Any registered person

2. GST Payable on Reverse Charge Basis in respect of ‘Supply of Services’ [Section 9(3) of CGST Act]

In respect of supply of the following Services, the tax on such goods shall be paid on reverse charge basis by the recipient of such goods as specified in Column (2), (3) and (4) of the said Table:—

S. No. Description of Supply of
Goods
Supplier of Goods Recipient of Supply who has to pay tax on Reverse Charge Basis
(1) (2) (3) (4)
Services by a goods transport agency (GTA) in respect of transportation of goods by road to— Goods
Transport
Agency
(GTA)
(a) any factory registered under or governed by the Factories Act, l948:or (a) Any factory registered under or governed by the Factories Act, 1948; or
(b) any society registered under the Societies Registration Act, 1860 or under any other law for the time being in force in any part of India; or (b) any society registered under the Societies Registration Act, 1860 or under any other law for the time being in force in any part of India; or
(c) any co-operative society established by or under any law; or (c) any co-operative society established by or under any law; or
(d) any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State  Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; or (d) any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act: or
(e) any body corporate established, by or under any law; or (e) any body corporate established, by or under any law; or
(f) any partnership firm whether registered or not under any law including association of persons; or (f) any partnership firm whether registered or not under any law including association of persons; or
(g) any casual taxable person. (g) any casual taxable person; located in the taxable territory.
2. Services supplied by an individual advocate including a senior advocate—

— by way of representational services before any court, tribunal or authority, directly or indirectly,

— to any business entity located in the taxable territory, including where contract for provision of such service has been entered through another advocate or a firm of advocates, or by a firm of advocates, by way of legal services, to a business entity.

An individual
advocate
including a
senior
advocate or
firm of
advocates.
Any business entity located in the taxable territory.
3. Services supplied by an arbitral tribunal to a business entity. An arbitral
tribunal.
Any business entity located in the taxable territory
4. Services provided by way of sponsorship to any body corporate or partnership firm Any person Any body corporate or partnership firm located in the taxable territory.
5. Services supplied by the Central Government. State Government. Union territory or local authority to a business entity excluding.—

(1) renting of immovable property, and

(2) services specified below—

(i)   services by the Department of Posts by way of speed post. express parcel post, life insurance, and agency services provided to a person other than Central Government. State Government or Union territory or local authority;

(ii)   services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;

(iii) transport of goods or passengers.

Central Government, State Government, Union Territory or  local authority Any business entity located in the taxable territory.
5A. Services supplied by the Central Government. State Government. Union territory or local authority by way of renting of immovable property to a person registered under the Central Goods and Services Tax Act, 2017 Central
Government,
State
Government.
Union
Territory or
local authority
Any person registered under the Central Goods and Services Tax Act 2017
6. Services supplied by a director of a company or a body corporate to the said company or the body corporate. A director of
a company or
a body
corporate
The company or a body corporate located in the taxable territory.
7. Services 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. 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. Supply of services 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 section 13(1)(a) of the Copyright Act, 1957 relating to original literary, dramatic, musical or artistic works to a publisher, music company, producer or the like. Author or
music
composer,
photographer,
artist, or the
like
Publisher, music company, producer or the like, located in the taxable territory.

 

(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)        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.

3. GST Payable on Reverse Charge Basis in respect of ‘Supply of Services’ [Section 5(3) of IGST Act]

Categories of supply of services mentioned in column (2) of the Table below, supplied by a person as specified in column (3) of the said Table, the Yb hole of integrated tax leviable under Section 5 of the Integrated Goods and Services Tax Act, shall be paid on reverse charge basis by the recipient of the such services as specified in column (4) of the said Table:—

S. No. Description of Supply of
Goods
Supplier of Goods Recipient of Supply who has to pay tax on Reverse Charge Basis
(1) (2) (3) (4)
1 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 a non-taxable territory
Any person located in the taxable territory. other than non-taxable online recipient.
2. Services supplied by a person located in non- taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India. Any person located in a non-taxable territory Importer, as defined in clause (26) of section 2 of the Customs Act, 1962(52 of1962). located in the taxable territory.
See also  Composition Scheme Rules - under GST Rules
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