GST Reverse charge liability u\/s 9(3) and 9(4) of CGST Act, 2017
By: – Ganeshan Kalyani
Goods and Services Tax – GST
Dated:- 17-8-2018<\/p>\n
Normally, GST is payable by a taxable person supplying goods or services or both. However, in some cases, GST is payable by the person receiving the goods or services or both. This is termed as reverse charge mechanism. The term 'reverse charge' as defined in the Act is reproduced below:
\n ''reverse charge'' means the liability to pay tax by the recipient of goods or services or both instead of the supplier of goods or services or both under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act;''
\nThere are two provisions under which GST is payable under reverse charge:
\n A) The first one is payable under section 9(3) of CGST Act, 2017. A list of goods and services on which the tax is payable under the said section is notified thru notificat<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n tax shall be paid by the lottery distributor or selling agent, being the recipient of supply of said goods. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n dated 28.06.2017. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 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; services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; and transport of goods or passengers. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n any or a non-banking financial company located in the taxable territory shall pay tax under reverse charge on receiving service from an individual direct selling agent other than a body corporate, partnership or limited liability partnership firm. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n under GST and collected GST , is RCM still applicable for specified catagory of persons? = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST Reverse charge liability u\/s 9(3) and 9(4) of CGST Act, 2017By: – Ganeshan KalyaniGoods and Services Tax – GSTDated:- 17-8-2018 Normally, GST is payable by a taxable person supplying goods or services or both. However, in some cases, GST is payable by the person receiving the goods or services or both. This is termed … Continue reading “GST Reverse charge liability u\/s 9(3) and 9(4) of CGST Act, 2017”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-13265","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13265","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13265"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13265\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\nThe category of services enumerated in the notification no. 13\/2017 are discussed below in detail:
\nGoods Transport Agency (GTA):
\nA Goods Transport Agency (GTA) means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. The tax on GTA service is payable by the recipient being any factory registered under or governed by the Factories Act, 1948; or 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 any co-operative society established by or under any law; or any person registered under the CGST Act or IGST Act or the SGST Act or the UTGST Act; or any body corporate established, by or under any law; or any partnership firm whether registered or not under any law including association of person; or any casual taxable p<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nLegal consultancy service:
\nA legal consultancy service means any service supplied in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority. Any business entity located in the taxable territory receiving legal service from an individual advocate including a senior advocate or firm of advocates by way of legal services, directly or indirectly shall pay tax under reverse charge basis.
\nA service provided by a partnership firm of advocate or an individual as an advocate other than a senior advocate, by way of legal service to an advocate or partnership firm of advocates providing legal services; or to any person other than a business entity; or to a business entity with an aggregate turnover up to twenty lakh rupees (ten lakh rupees in the case of a special category states) in the preceding financial year; or to the Central Government, State Government, Union Terri<\/p>\n
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\nA person registered under the CGST Act, 2017 shall pay tax on the services of renting of immovable property received from the Central Government, State Government, Union territory or local authority, services
\nService supplied by a Director of a company or a body corporate:
\nThe company or a body corporate located in the taxable territory shall pay GST under reverse charge on receiving service from a director of a company or a body corporate.
\nService supplied by an insurance agent:
\nAny person carrying on insurance business, located in the taxable territory shall pay GST under reverse charge on the services supplied by an insurance agent.\n<\/p>\n
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\nB) GST liability u\/s 9(4) of CGST Act, 2017
\nThe second method of payment of GST under reverse charge is provided u\/s 9(4) of CGST Act. As per the said provision a registered person shall pay tax on receiving goods or services or both from a person who is not registered under GST.
\nFurther, vide Notification no. 8\/2017-CTR dated 28.06.2017 the tax payment as required u\/s 9(4) was exempted if the aggregate value of the supplies of goods or services or both received by a registered person from any or all the suppliers, who is or are not registered does not exceeds ₹ 5000\/-.
\nThereafter, the provision of section 9(4) of CGST Act, was suspended till 31.03.2018 vide Notification no. 38\/2017-CTR dated 13.10.2017. It was again suspended till <\/p>\n
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\n Dated: 18-8-2018
\n Reply By KASTURI SETHI as =
\nIn that situation, only FCM is applicable.
\n Dated: 18-8-2018
\n Reply By GAJESH GUPTA as =
\nSir,
\nAs per recent notification Government has finally imposed the Reverse Charge Mechanism starting from 01.02.2019.
\nPlease confirm whether it is for 9(3) and 9(4) and both of GST act.
\n Dated: 11-2-2019
\n Reply By Ganeshan Kalyani as =
\nIt is for Section 9(4). However, the list of person who shall pay tax under reverse charge on purchase from an unregistered dealer is not yet notified.
\n Dated: 12-2-2019
\n Reply By SHUBHAM AHUJA as =
\nDEAR SIR
\nAS PER LATEST NOTIFICATION OF RCM UNDER SECTION 9(4) IS IT EFFECTIVE FROM 01.02.2019 , CAN YOU PLEASE RCM UNDER SECTION 9(3) WAS SUSPENDED OR NOT
\n Dated: 1-3-2019
\n Reply By Ganeshan Kalyani as =
\nRCM under Sec 9 (3) is already inforce. Security service is being added from 1st Jan 2019.
\n Dated: 1-3-2019
\n Reply By SHUBHA<\/p>\n
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