Reverse Charge Under GST
By: – Alok Agarwal
Goods and Services Tax – GST
Dated:- 6-7-2017<\/p>\n
Reverse charge on specified Goods & Services
\nSection 9(3) of CGST\/SGST acts provides that, Government may specify categories of supply of goods or services which shall be paid on reverse charge basis i.e. tax shall be paid by the recipient of such goods or services. In this regards two notifications have been issued providing the list of goods and services, wherein the purchaser\/recipient has the liability to pay GST.
\nGoods subject to reverse charge – Notification no. 04\/2017 dated 28th June 2017
\nDescription of supply of Goods Supplier of goods
\nSupplier of Goods
\nRecipient of supply
\nCashew nuts, not shelled or peeled
\nAgriculturist
\nAny registered person
\nBidi wrapper leaves (tendu)
\nAgriculturist
\nAny registered person
\nTobacco leaves
\nAgriculturist
\nAny registered person
\nSilk yarn
\nAny person who manufactures silk yarn from raw silk or silk worm cocoons for supply of silk y<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ry Goods and Services Tax Act; 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 (g) any casual taxable person. Union Territory Goods and Services Tax Act; 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 (g) any casual taxable person; located in the taxable territory = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n he company or a body corporate located in the taxable territory. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n y auto rickshaw is exempted services. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n l be the earliest of the following dates – = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Reverse Charge Under GSTBy: – Alok AgarwalGoods and Services Tax – GSTDated:- 6-7-2017 Reverse charge on specified Goods & Services Section 9(3) of CGST\/SGST acts provides that, Government may specify categories of supply of goods or services which shall be paid on reverse charge basis i.e. tax shall be paid by the recipient of such … Continue reading “Reverse Charge Under GST”<\/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-5885","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/5885","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=5885"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/5885\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nServices supplied by an individual advocate including a senior advocate by way of representational services before any court, tribunal or authority by way of legal services, to a business entity.
\n An individual advocate including a senior advocate or firm of advocates
\nAny business entity located in the taxable territory
\nServices supplied by an arbitral tribunal to a business entity.
\nAn arbitral tribunal
\nAny business entity located in the taxable territory
\nServices provided by way of spons<\/p>\n
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\nServices supplied by an insurance agent to any person carrying on insurance business
\nAn insurance agent
\nAny person carrying on insurance business, located in the taxable territory.
\nServices supplied by a recovery agent to a banking company or a financial institution or a nonbanking financial company.
\nA recovery agent
\nA banking company or a financial institution or a non-banking financial company, located in the taxable territory.
\nSupply 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
\nAuthor or music composer, photographer, artist, or the like
\nPublisher, music company, producer or the like, located in the taxable territory
\nReverse<\/p>\n
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\n2. A registered person stay in a hotel whose room tariff is less than ₹ 1,000. Section 9(4) won't be applicable since services by a hotel having declared tariff less than ₹ 1,000 per day or equivalent is an exempt service.
\n3. The Section is applicable to intra state taxable supplies only. As per section 24, in case of inter-state taxable supply, registration is mandatory without any turnover limit. So there could not be any taxable supply from unregistered to registered person under reverse charge in case of inter-state.
\n4. Supplier should be unregistered whether he is liable to registered or not.
\n5. Recipient should be registered.
\nExemption to Section 9(4)
\nVide Notification 08\/2017 dated 28\/06\/2017, reverse charge provisions would not be applicable if the aggregate value of such supplies of goods or service or both received by a registered person from any or all the suppliers, who is or are not registered, does not exceed <\/p>\n
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\n(a) The date of payment
\n OR
\n(b) The date immediately after 60 days from the date of issue of invoice by the supplier
\nIf it is not possible to determine the time of supply under (a) or (b), the time of supply shall be the date of entry in the books of account of the receiver of service.
\nInput tax credit on reverse charge supplies
\nTax paid on reverse charge basis will be available for input tax credit if such goods and\/or services are used in the course or furtherance of business. The service recipient (i.e., who pays reverse tax) can avail input tax credit
\nInvoice in case of reverse charge
\nAs per section 31(3)(f), person discharging GST liability under reverse charge under section 9(3) or 9(4) shall issue an invoice in respect of goods or services or both received by him from the supplier. Further as per 31(3) (g) shall issue a payment voucher at the time of making payment to the supplier.
\n Reply By SUDHIR KINHALE as =
\nDear Sir,
\nSelf<\/p>\n
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