Finance Division

HO, 5 Sansad Marg, New Delhi

Tel: 011-23716795, Email – fintax@pnb.co.in
16.10.2017
CIRCULAR NO HO / FD / 26/ 2017

TO ALL OFFICES
Implementation of Goods & Service Tax (GST)- GST under Reverse Charge-
Unregistered Vendors
Attention of the branches is invited towards FD:HO Circular No.16/2017dated
20.07.2017 wherein guidelines relating to accounting procedure to be followed for GST
Compliance were circulated. It was also advised vide our above referred circular that in
case of unregistered vendors, GST is to be paid by the bank under Reverse Charge.
Govt.of India, Ministry of Finance, Department of Revenue, CBEC vide Notification Nos.
32/2017 –Integrated Tax (Rate), 38/2017-Union Territory (Rate) and 38/2017-Central
Tax (Rate) dated 13.10.2017 has exempted the supply of goods or Services or both
received by a registered person from an unregistered vendors from GST till 31st March
2018.The revised guidelines come into force w.e.f.13.10.2017 (the date of
Notifications) and shall remain valid till 31.03.2018.
In view of the above, no GST is to be paid under Reverse Charge in case of
Goods/Services purchased from an unregistered vendor except in the following
cases as mentioned under ‘A and B
A. GST is to be paid under Reverse Charge in both cases i.e. Registered as
well as Unregistered Vendors for following services :-
Sr. Nature of service SAC/ Rat Description
No. HSN e of
Code tax
1 Goods Transport 996511 5% Road transport services of Goods
Agency Service including letters, parcels, live animals,
household & office furniture, containers
etc by refrigerator vehicles, trucks,
trailers, man or animal drawn vehicles
or any other vehicles.
2 Sponsorship 998397 18% Sponsorship Services
services
3 Services by Director 999799 18% Other Services
4 Recovery Agent 998592 18% Collection agency services
Services
5 Arbitral Tribunal 998215 18% Arbitration and conciliation services
services
6 Services by 999119 18% Other administrative services of the
Government of local government
Authority
 B. Legal Charges paid to the Advocates

Reverse Charge is applicable in case legal services are provided by an unregistered

advocate. If any legal service is received by Bank from an unregistered Advocate no
GST is to be paid to the Advocate, however 100% GST is to be paid under Reverse
Charge.
Further in case the advocate is registered and GST is charged in the Invoice, the
amount of GST will be paid to the advocate.
“Legal Service” means any of the following services received by the Bank:-
• Advice,
• Consultancy
• Assistance
• Representation in any court of Law
• Representation in Arbitral Tribunal
• Representation in any authority

The relevant SAC Codes with applicable GST rate are as under:-

Sr. Nature of SAC/HS Rate of tax Description

No. service N Code

1 Legal services 998211 18% Legal advisory and representation

services concerning criminal law.
2 Legal services 998212 18% Legal advisory and representation
services concerning other fields of
law.
3 Legal services 998213 18% Legal documentation and
certification services concerning
patents, copyrights and other
intellectual property rights.
4 Legal services 998216 18% Other legal services
5 Legal services 998214 18% Legal documentation and
certification services concerning
other documents.

All concerned are advised to note the above guidelines for meticulous compliance.

(P K Sharma)
General Manager