Seeks to amend notification No. 10/2017- Integrated Tax (Rate) so as to specify services supplied by individual Direct Selling Agents (DSAs) to banks/ non-banking financial company (NBFCs) to be taxed under Reverse Charge Mechanism (RCM) - 16/2018 - Integrated GST (IGST) Rate

Reverse Charge Mechanism applies to services by individual DSAs to banks and NBFCs, shifting GST liability to the recipient.

The notification inserts an entry treating services supplied by individual Direct Selling Agents (DSAs), other than bodies corporate, partnerships or LLPs, to a banking company or an NBFC located in the taxable territory as subject to the Reverse Charge Mechanism, thereby allocating tax liability to the recipient bank or NBFC. It also adds an explanatory definition of 'renting of immovable property' to include allowing access, occupation, use or similar arrangements, with or without transfer of possession or control.