List of Services under Reverse Charge Mechanism under GST

Reverse charge mechanism means that, in case of specific goods or service, the recipient of goods or services shall be liable to pay GST under reverse charge instead of the provider of goods or services.

Following are the details of services which are covered under reverse charge mechanism:

Details of services Provider of service Recipient of service
Taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory other than non-assessee online recipient Any person located in a non-taxable territory Any person located in the taxable territory other than non-assessee online recipient (Business Recipient)
Services provided or agreed to

be provided by a goods transport agency (GTA) in respect of transportation of goods by road

Goods Transport Agency (GTA) a)      Any Factory, registered under Factories Act;

b)      Any Society, registered under Society Registration Act;

c)      Any co-operative society;

d)      Any person registered under CGST/ SGST/ UTGST Act;

e)      Any partnership firm;

f)       Casual taxable person.

Services provided or agreed to be provided by an individual advocate or firm of advocates by way of legal services, directly or indirectly. An individual advocate or firm of advocates Any business entity
Services provided or agreed to be provided by an arbitral tribunal An arbitral tribunal Any business entity
Sponsorship services Any person Any body-corporate or partnership firm
Services provided or agreed to

be provided by Government or

local authority 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

Government;

(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

Government or local authority Any business entity
Services provided or agreed to be provided 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 A company or a body corporate.
Services provided or agreed to be provided by an insurance agent to any person carrying on insurance business An insurance Agent Any person carrying on insurance business.
Services provided or agreed to be provided 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 nonbanking financial company
Services by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India A person located in non-taxable territory to a person Importer as defined under clause (26) of section 2 of the Customs Act, 1962
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

Author or music composer, photographer,

artist, etc.

Publisher, Music company, Producer
Radio taxi or Passenger Transport Services provided through electronic commerce

operator

Taxi driver or Rent a cab operator Any person (Tax shall be payable by E-commerce operator)

 

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