In gst, rcm applicable on all expenses or on some specified expenses.?
2nd we have to raise invoice or in payment voucher we can show rcm amount. ? Thanks
GST reverse charge mechanism is applicable only on few things GST council has decided few goods and services on which reverse charge is applicable.
| Service Provider | Service Receiver | GST to be paid by |
|---|---|---|
| Goods Transport Agency | Casual Taxable person, body corporate, partnership firm, any society, factory, any person registered under CGST, SGST, UTGST Act. | Service recipient. |
| Recovery Agent | Banking Company, NBFC or any financial institution. | Service recipient. |
| A director of a company or a body corporate | A company or a body corporate | Service recipient. |
| An individual advocate or firm of advocates , An arbitral tribunal | Any business entity. | Service recipient. |
| Taxi driver or Rent a cab operator ( if service provided by e-commerce operator) | Any person | E-commerce Operator |
| An insurance agent | Any person carrying on insurance business | Service recipient. |
| Any person providing sponsorship services | Anybody corporate or partnership firm. | Service recipient. |
| A person located in non-taxable territory to a person located in non-taxable territory | Importer | Service recipient. |
| Author or music composer, photographer, artist, etc | Publisher, Music company, Producer | Service recipient. |
| Any person who is located in a non-taxable territory | Any person located in the taxable territory other than non-assessee online recipient (Business Recipient) |
The supplier must mention in his tax invoice if the tax is payable on reverse charge
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