British Institute of Management Accounts

Which supplies are covered under RCM in GST??
Ans.-As per the provision of Section 9(3) of CGST Act which reads as follows ;

The Central or a State Government may, on the recommendation of the Council, by notification, specify categories of supply of goods or services or both the tax on which is payable on reverse charge basis and the tax thereon shall be paid by the recipient of such goods or services or both and all the provisions of this Act shall apply to such person as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
As per notification no 13/2017, Central tax dated 28/06/2017, following services are covered under reverse charge :-
i. Goods Transport Agency (GTA)
ii. 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
iii. Services supplied by an arbitral tribunal to a business entity
iv. Services provided by way of sponsorship to any body corporate or partnership firm.
v. 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
(vi). Services supplied by a director of a company or a body corporate to the said company or the body corporate.
(vii.) Services supplied by an insurance agent to any person carrying on insurance business
(viii.) Services supplied by a recovery agent to a banking company or a financial institution or a non banking financial company.
(ix). 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 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,producer or the like.

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