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What are the Different Goods and Services Under Reverse Charge in GST

CASE

Seller

Person who Deposit Service Tax

Unregistered dealer selling Goods and Service to a registered dealer

Unregistered Dealer

Registered Dealer (Buyer)

E-Commerce Transaction

Suppose Ajay Enterprises(Vendor) sells goods to Customer through E-Commerce Company

 

 

Vendor (Ajay Enterprises)

E-Commerce Company

(And not Customer)

Others Cases

(To be Notified by State and Central Government)

(To be Notified by State and Central Government)

Exemption in Case of Services Upto 5000 per day

Government has issued Notification 8/2017

As per this Notification

Local Purchases upto 5000 per day from all Unregistered Parties are exempt from GST

(This 5000 purchase is combination of Purchases from All Parties Combined

Interstate Purchases are not covered here)

 

Different Notified Services by GST Council

(Approved in Decision Taken on 19 May 2017)

NAME OF SERVICE SERVICE PROVIDER SERVICE RECEIVER
Import of Service (Service provided from  Non-Taxable Territory) Foreign Party Indian Co
Transport of Goods by Road Goods Transport Agency Any person Registered Under CGST, UTGST, SGST
Any Factory,
Any Society/Cooperative Society Registered in India
Any body corporate(Company)
Any Partnership Firm
Casual Taxable Person
Advocate/Legal Service Advocate/Firm of Advocate Any business Entity
Arbitrary Tribunal Advocate/Firm of Advocate Any business Entity
Sponsorship Service Any Person Any body corporate(Company) or Partnership
Service by Director Director Any body corporate(Company) 
Insurance Agent Service Insurance Agent Insurance Co
Recovery Agent Service Recovery Agent  Bank or Financial Institutions
Ocean Freight (Transport of Goods by Vessel from place outside India to customs clearance in India) Foreign Party(Person located in Non-Taxable Territory) Importer
Copyright Service related to literary, dramatic, musical, artistic work Author, music composer, photographer, artist Publisher, Music Com, Producer
Radio Taxi Service Taxi Driver E Commerce Company
All Service by Government except Govt Business Entity
Renting of Immovable Property
Service by Department of Posts
Service in Relation to Aircraft or vessel
Service of Transport of Goods or Passengers

Reverse Charge on Goods

S.No. Description of supply of goods Supplier of goods Recipient of goods
1 Cashew nuts, not shelled or peeled Agriculturist Any registered person
2 Bidi wrapper leaves (tendu) Agriculturist Any registered person
3 Tobacco leaves Agriculturist Any registered person
4 Supply of lottery State Government, Union Territory or any local authority Lottery distributor or selling agent
5 Silk yarn Any person who manufactures silk yarn from raw silk or silk worm cocoons for supply of silk yarn Any registered person

 

Purchase of services 2 Image.jpg

Note:-

GST On Manpower Service

Earlier Reverse Charge Was Applicable on Manpower Service in Service Tax

Now, these are not covered under Reverse Charge in GST if Service Provider is registered in GST

However, if Service Provider is from Unregistered Persons, then it will be covered in Reverse Charge in GST

Purchase From registered.jpg

 

Purchase From Unregistered.jpg

  1. GST - Goods and Services Tax, India
  2. GST Computation & Accounting
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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