GST REVERSE CHARGE

This query is : Resolved

rajesh (Querist)
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26 May 2017 Dear Experts, As per sec 9 sub sec 3. the government will be specify in which goods we have to pay reverse charge . but I want to know that which are those goods has been specifyed by govt for reverse charges.

Guest

Guest (Expert)

26 May 2017 Such goods are not yet notified. To understand reverse charge kindly see this video https://youtu.be/L11cxluHOIc

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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27 July 2024 Under the Goods and Services Tax (GST) regime in India, the Reverse Charge Mechanism (RCM) is a process where the recipient of goods or services is liable to pay the GST instead of the supplier. This mechanism is specified under Section 9(3) of the CGST Act.

### **Goods and Services Specified for Reverse Charge Mechanism**

The government has notified the following goods and services under RCM, as specified in various notifications:

#### **1. **Services under Reverse Charge:**

1. **Legal Services:**
- Provided by an individual advocate or a firm of advocates.
- By a senior advocate.
- By an arbitral tribunal.

2. **Insurance Services:**
- Provided by an insurance company to a policyholder.

3. **Goods Transport Agency (GTA) Services:**
- Services provided by a Goods Transport Agency.

4. **Director's Services:**
- Services provided by directors of a company.

5. **Accompaniment Services:**
- Services provided by a person to a company or firm.

6. **Recovery Agent Services:**
- Services provided by recovery agents to financial institutions or banks.

7. **Online Information and Database Access or Retrieval (OIDAR) Services:**
- Provided by a non-resident service provider to a recipient located in India.

#### **2. **Goods under Reverse Charge:**

1. **Cashew Nuts:**
- Cashew nuts that are not processed, are bought from unregistered suppliers.

2. **Tobacco:**
- Tobacco or tobacco products, if supplied by an unregistered supplier.

3. **Coal:**
- Coal, if supplied by an unregistered dealer.

4. **Waste and Scrap:**
- Waste and scrap from certain specified industries, when supplied by an unregistered person.

5. **Jute, Cotton, and other Agriculture Products:**
- These products, if supplied by an unregistered dealer.

6. **Certain Specified Goods:**
- Specified in various notifications, including products like raw silk, silk yarn, and others as notified from time to time.

### **Key Notifications for Reference:**

1. **Notification No. 13/2017 – Central Tax (Rate):**
- This notification lists out the services and goods covered under RCM.

2. **Notification No. 29/2018 – Central Tax (Rate):**
- Provides updates and changes to the reverse charge mechanism.

3. **Notification No. 8/2017 – Central Tax (Rate):**
- Provides details about specific goods and services under reverse charge.

### **Summary**

- **Services under RCM:** Include legal services, GTA services, insurance services, director’s services, and others.
- **Goods under RCM:** Include certain unprocessed goods and waste products, as specified.

For accurate application and compliance, it is crucial to refer to the latest GST notifications and updates issued by the government, as the list of goods and services under RCM can be updated periodically. Always consult with a GST practitioner or tax advisor for the most current information and guidance related to RCM.

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