REVERSE CHARGE ON POSTAL SERVICES

Dear Sir,

As per notification no. 13 (CT Rate) dated 28.06.2017 , item 5, RCM is applicable on Services   supplied   by  the   Central Government,    State    Government, Union territory or local authority to a business entity excluding, -

(1) renting of immovable property,

(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       Central Government,  State  Government  or Union territory or local authority;

(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.

In this respect, please clarify that in case of  2(i) above whether services given by postal department other than those specified above comes under Reverse charge mechanism or does it falls under Nil rated as specified in notification no 12/2017  (CT Rate) dated 28.06.2017.

Thanks & Regards

CA SHRUTI BHATNAGAR