Specified Reverse Charge Under GST (As Updated Till 31-Jan-2019 )-

Under Reverse charge  mechanism  recipient of the goods and/or services is liable to
pay GST instead of the supplier.
As per the provisions of section 9(3) of CGST / SGST (UTGST) Act, 2017 / section
5(3)of IGST Act, 2017, the Government may, on the recommendations of the Council,
by notification, specify categories of supply of goods or services or both, the tax on
which shall be paid on reverse charge basis by the recipient of such goods or services
or both and all the provisions of this Act shall apply to such recipient as if he is the
person liable for paying the tax in relation to the supply of such goods or services or
both.
Discussion regarding Specified Goods and Services on which GST is Payable
under Reverse Charge Mechanism under above provisions-
1 Relevant Section related to Specified Reverse Charge under GST

(i) Section 9(3) of CGST Act

The Government may, on the recommendations of the Council, by notification, specify
categories of supply of goods or services or both, the tax on which shall be paid on
reverse charge basis by the recipient of such goods or services or both and all the
provisions of this Act shall apply to such recipient as if he is the person liable for paying
the tax in relation to the supply of such goods or services or both.
(ii) Section 5(3) of IGST Act
The Government may, on the recommendations of the Council, by notification, specify
categories of supply of goods or services or both, the tax on which shall be paid on
reverse charge basis by the recipient of such goods or services or both and all the
provisions of this Act shall apply to such recipient as if he is the person liable for paying
the tax in relation to the supply of such goods or services or both
(iii) Section 9(3) of Maharashtra State GST Act
The Government may, on the recommendations of the Council, by notification, specify
categories of supply of goods or services or both, the tax on which shall be paid on
reverse charge basis by the recipient of such goods or services or both and all the
provisions of this Act shall apply to such recipient as if he is the person liable for paying
the tax in relation to the supply of such goods or services or both.
2. Goods notified by Government on which GST shall be paid on Reverse Charge
Basis

Sr Description of Supplier of Recipient of Goods Notification No. Effective

Goods Goods From

i Cashew nuts, not Agriculturist Any registered person Notification 01-Jul-17

shelled or peeled No. 4/2017-
ii Bidi wrapper leaves Agriculturist Any registered person Central Tax
(tendu) (Rate)

iii Tobacco Leaves Agriculturist Any registered person

iv Silk yarn Agriculturist Any person who

manufactures silk yarn
from raw silk / silk
worm cocoons for
supply of silk yarn

v Supply of lottery State Lottery distributor or

Government, selling agent
Union Territory
or
any local
authority

vi Used vehicles, Central Any registered person Notification 13-Oct-

seized and Government, No. 36/2017- 17
confiscated goods, State Central Tax
old and used goods, Government, (Rate)
waste and scrap Union territory or
a local authority

vii Raw cotton Agriculturist Any registered person Notification 15-Nov-

No. 43/2017- 17
Central Tax
(Rate)

viii Priority Sector Any registered Any registered person Notification 28-May-
Lending person No.11/2018- 18
Certificate Central Tax
(Rate)

3. Services notified by Government on which GST shall be paid on Reverse

Charge Basis

Sr Description of Supply of Services Supplier of Service Recipient of Service

A Notification No. 13/2017- Central Tax (Rate) Effective from 01-July-2017

i Supply of Services by a goods transport Goods (a) Any factory

agency (GTA) *who has not paid central tax Transport registered under or
(CGST) at the rate of 6 in respect of Agency (GTA) governed by
transportation of goods by road to – the Factories Act,
(a) any factory registered under or governed 1948(63 of 1948); or
by the Factories Act, 1948(63 of 1948);or (b) any society
(b) any society registered under the Societies registered under the
Registration Act, 1860 (21 of 1860) or under Societies
any other law for the time being in force in Registration Act, 1860
 any part of India; or (21 of 1860) or under
(c) any co-operative society established by or any
under any law; or other law for the time
(d) any person registered under the Central being in force in any
Goods and Services Tax Act or the part
Integrated Goods and Services Tax Act or of India; or
the State Goods and Services Tax Act or the (c) any cooperative
Union Territory Goods and Services Tax society established by
Act; or or
(e) any body corporate established, by or under any law; or
under any law; or (d) any person
(f) any partnership firm whether registered or registered under the
not under any law including association of Central Goods and
persons & *includes Limited Liability Services Tax Act or the
Partnership Firm; or Integrated Goods and
(g) any casual taxable person. * Inserted Services Tax Act or the
by Noti. No. 22/2017 State Goods and
Services Tax Act or the
Union Territory Goods
and Services Tax
Act; or
(e) any body 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.

ii * Services provided by an individual An individual advocate Any business entity

advocate including a senior advocate or firm including a senior located in the taxable
of advocates by way of legal services, advocate or firm of territory
directly or indirectly. advocates
Explanation.- “legal service” means any
service provided in relation to advice,
consultancy or assistance in any branch of
law, in any manner and includes
representational services before any court,
tribunal or authority * As per Corrigendum
issued on 25-Sept-2017

iii Services supplied by an arbitral tribunal to a An arbitral Any business entity

business entity tribunal located in the taxable
territory

iv Services provided by way of sponsorship to Any Person Any body corporate or

any body corporate or partnership firm partnership firm
 located in the taxable
territory

v Services supplied by the Central Central Any business entity

Government, State Government, Union Government, located in the taxable
territory or local authority to a business State territory
entity excluding Government,
services specified below – Union
(i) services by the Department of Posts by territory or
way of speed post, express parcel post, life local authority
insurance, and agency services provided to a
person other than Central Government, State
Government or Union territory or local
authority;
(ii) services in relation to an aircraft or a
vessel, inside or outside the precincts of a
port or an airport;
(iii) transport of goods or passengers

vi Services supplied by a director of a company A director of a company The company or a body

or a body corporate to the said company or or a body corporate corporate
the body corporate located in the taxable
territory

vii Services supplied by an insurance agent to An insurance agent Any person carrying on
any person carrying on insurance business insurance business,
located
in the taxable territory

viii Services supplied by a recovery agent to a A recovery agent A banking company or

banking company or a financial institution or a financial institution or
a non-banking financial company a
non-banking financial
company, located in the
taxable territory

ix Supply of services by an author, music Author or music Publisher, music

composer, composer, company, producer or
photographer, artist or the like by way of photographer, the like, located in the
transfer or permitting the use or enjoyment artist, taxable territory
of a copyright covered under clause (a) of or the like
sub-section (1) of section 13 of the
Copyright Act, 1957 relating to original
literary, dramatic,musical or artistic works to
a publisher, music company, producer

B Notification No. 33/2017- Central Tax (Rate) Effective from 13-Oct-2017

i Supply of services by the members of Members of Overseeing Reserve Bank of India

Overseeing Committee to Reserve Bank of Committee constituted
India by the Reserve Bank of
India
C Notification No. 3/2018- Central Tax (Rate) Effective from 25-Jan-2018

i Services supplied by the Central Central Government, Any person registered

Government, State Government, Union State Government, under the Central
territory or local authority by way of renting Union territory or Goods and Services Tax
of immovable property to a person registered local authority Act, 2017
under the Central Goods and Services Tax
Act, 2017

D Notification No. 3/2018- Central Tax (Rate) Effective from 25-Jan-2018

i Services supplied by individual Direct Individual Direct Selling A banking company or

Selling Agents (DSAs) other than a body Agents (DSAs) other a non-banking financial
corporate, partnership or limited liability than a body corporate, company, located in the
partnership firm to bank or non-banking partnership or limited taxable territory
financial company (NBFCs) liability partnership firm

E Notification No. 29/2018- Central Tax (Rate) Effective from 01-Jan-2019

i Services provided by business facilitator Business facilitator (BF) A banking company,

(BF) to a banking company located in the taxable
territory

ii Services provided by an agent of business An agent of business A business

correspondent (BC) to business correspondent (BC) correspondent, located
correspondent in the taxable territory
(BC)

iii Security services (services provided by way Any person other than a A registered person,
of supply of security personnel) provided to body corporate located in the taxable
a registered person – Provided that nothing territory
contained in this entry shall apply to, –
(i)(a) a Department or Establishment of the
Central Government or State Government or
Union territory; or
(b) local authority; or
(c) Governmental agencies; which has taken
registration under the Central Goods and
Services Tax Act, 2017 for the purpose of
deducting tax under section 51 of the said
Act and not for making a taxable supply of
goods or services; or
(ii) a registered person paying tax under
section 10 of the said Act.

F Notification No. 10/2017- Integrated Tax (Rate) [ Additional Services notified under IGST Act ]

i Any service supplied by any person who is Any person located in a Any person located in
located in a non-taxable territory to any non-taxable territory the taxable territory
person other than non-taxable online other
recipient than nontaxable online
 recipient.

ii Services supplied by a person located in non- A person located in Importer, as defined in

taxable territory by way of transportation of non-taxable territory clause (26) of section 2
goods by a vessel from a place outside India of
up to the customs station of clearance in the Customs Act, 1962,
India located in the taxable
territory

4. Exemption from Registration (Notification No. 5/2017 – Central Tax)

The persons who are only engaged in making supplies of taxable goods or services or
both, the total tax on which is liable to be paid on reverse charge basis by the recipient
of such goods or services or both under sub-section (3) of section 9 of the said Act as
the category of persons exempted from obtaining registration under the aforesaid Act

5. Goods Transport Agency Exemption of Intra-state Supply Notification

No. 12/2017- Central Tax (Rate)
Services provided by a goods transport agency, by way of transport in a goods carriage
of goods – 1) Where consideration charged for the transportation of goods on a
consignment transported in a single carriage does not exceed one thousand five
hundred rupees ( or ) 2) Where consideration charged for transportation of all such
goods for a single consignee does not exceed rupees seven hundred and fifty Reverse
Charge will aslo not be applicable in above case.
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