List of services covered under reverse charge mechanism in GST

Sr. No.

Nature of Services

Supplier of Services

Recipient of Services

1

Supply of Services by a goods transport agency (GTA) who has not paid central tax @6% in respect of transportation of goods by road

Goods Transport Agency

(a) Any factory registered under or governed by the Factories Act, 1948; or

(b) 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

(c) any co-operative society established by or under any law; or

(d) any person registered under the GST Act, 2017; or

(e) anybody 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.

2

Legal Services

Individual Advocate including Senior Advocate

Business Entity located in the taxable territory who is litigant, applicant or petitioner, as the case may be, shall be treated as the person who receives the legal services.

3

Services supplied by Arbitral Tribunal

Arbitral Tribunal

Any business entity located in the taxable territory

4

Sponsorship Services

Any person

Anybody corporate or partnership firm located in the taxable territory.

5

Services other than -

(i) Renting of immovable property services;

(ii) Services provided by Department of Posts;

(iii) Services in relation to aircraft or a vessel, inside or outside precincts of a port or an airport;

(iv) Transport of goods or passengers

Central Government, State Government, Union Territory or Local Authority

Any business entity located in the taxable territory.

6

Director Services

A director of a company or a body corporate

The company or body corporate located in the taxable territory

7

Insurance Agency Services

Insurance Agent

Any person carrying on insurance business, located in taxable territory.

8

Recovery Agency

Recovery Agent

Banking Company or a financial institution, or a NBFC, located in taxable territory.

9

Transfer or Permitting use or enjoyment of a copyright relating to original literary, dramatic, musical or artistic work to a publisher, music company, producer or the like.

Author or Music Composer, photographer, artist or the like.

Publisher, music company, producer or the like, located in taxable territory.

10

Supplier of services by member of Overseas Committee

Members of Overseeing Committee constituted by the RBI

Reserve Bank of India

11

Import of Services

Any person located in non-taxable territory

Any person located in taxable territory other than non-taxable online recipient

12

Transportation of goods by vessel. Where the value of freight is not available it is deemed to be 10% of CIF.

Any person located in non-taxable territory

Importer as defined under section 2(26) of Customs Act, located in taxable territory.

13

Services supplied by the Central Government, State Government, Union territory or Local authority by way of renting of immovable property to a person registered under the CGST Act.

Central Government, State Government, Union territory or Local authority

Any person registered under the CGST Act, 2017

14

Services provided by Business Facilitator (BF) to a banking company

Business Facilitator (BF)

A banking company, located in taxable territory

15

Services provided by an agent of Business Correspondent (BC)( to Business Correspondence (B2C)

Any Agent of business correspondence (BC)

A business correspondent, located in taxable territory

16

Security services (services provided by way of supply of security personnel) provided to a registered person.

Provided that RCM will not be applicable -

(i) Department or Establishments of Central or State Government or UT; or

(ii) Local Authority;

(iii) Governmental agencies:

Which has taken registration only for the purposes of deduction of tax

(iv) Registered person discharging tax liability under Composition Scheme

Any person other than a body corporate

A registered person located in taxable terrotory.