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Notifications CBIC

CBIC2017-06-28

Reverse Charge Mechanism (RCM) on Notified Services — s.9(3) CGST

Notification No. 13/2017 — Central Tax (Rate)

Lists services on which GST is payable on Reverse Charge basis by the recipient (not supplier). Key services: legal (advocate), GTA, director sitting fees, insurance agent, government authority services.
Issued
2017-06-28
Effective from
2017-07-01
Act
CGST Act 2017 s.9(3)

What it says

Legal services by advocate

Any service provided by an individual advocate or firm of advocates — GST payable by the business entity (recipient) under RCM. Rate: 18% GST on legal fees.

Goods Transport Agency (GTA) services

GTA providing services to registered persons, factories, societies, co-operative societies, body corporates, or partnership firms — RCM applicable. Recipient pays GST. GTA can optionally pay GST under forward charge (Notification 5/2017-CT(R) option).

Services by director to company

Services provided by a director of a company/body corporate to the company in their capacity as director — GST payable by the company under RCM.

Insurance agent services

Services by an insurance agent to an insurance company — RCM on the insurance company.

Government/local authority services

Services by government or local authority to a business entity (except some exempt categories) — RCM on business entity recipient.

Affected forms and returns

  • GSTR-3B Table 3.1(d)
  • GSTR-2B (auto-populated from supplier)
⚠ VERIFY

Whether s.9(4) RCM (purchases from unregistered suppliers) applies currently — s.9(4) was suspended by Notification 8/2017-CT(R) and partially reactivated. Verify current RCM applicability on unregistered supplier purchases for your sector. Separately, GTA RCM forward-charge option details may have been updated — check latest CBIC circular.

Primary source

Notification No. 13/2017 — Central Tax (Rate) — issued by CBIC under CGST Act 2017 s.9(3)

View official notification ↗