CGST: Govt notifies certain services under RCM wef

01.10.2019
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Seeks to amend notification No. 13/2017- Central Tax (Rate) so as to notify services
under reverse charge mechanism (RCM) as recommended by GST Council in its
37th meeting held on 20.09.2019 vide Notification No. 22/2019-Central Tax (Rate)
dated 30th September, 2019.

Additional services covered under Reverse Charge Mechanism (RCM)

Nature of Service Service Provider Person liable to

pay tax

Services of renting of a Any person other than a body Any body

motor vehicle provided
to a body corporate
corporate, paying central tax at the corporate located
rate of 2.5% on renting of motor in the taxable
vehicles with input tax credit only of territory
input service in the same line of
business.

Services of lending of Lender i.e. a person who deposits Borrower i.e. a

securities under the securities registered in his person who
Securities Lending name or in the name of any other borrows the
Scheme, 1997 person duly authorised on his securities under
(“Scheme”) of behalf with an approved the Scheme
Securities and intermediary for the purpose of through an
Exchange Board of lending under the Scheme of SEBI approved
India (“SEBI”), as intermediary of
amended. SEBI.”

Services of author – option to pay under forward charge

With respect to the services of transfer or permitting the use or enjoyment of a

copyright relating to original literary works supplied by an author to a publisher,
the author is given a choice to either pay the GST under forward charge, else the
publisher located in India would be liable to pay GST under RCM.

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 In case the author wishes to pay under forward charge, he should be registered
under the CGST Act, 2017 and file a declaration in Annexure I with the jurisdictional
CGST or SGST Commissioner by 31st Oct ’19 for exercising the option from
01.11.2019 (for F.Y 2019-20) or before commencement of a financial year for the
option to be effective from that financial year. This declaration would be valid up to
the end of the financial year 2019-20. Such declaration is to be filed for each
financial year.
Also, the author is required to make a declaration in accordance with Annexure II
on the invoice issued by him in Form GST INV-I to the publisher.
The declaration in Annexure I shall be filed on or before 31.10.2019 for exercising
the option from 1.11.2019 (for FY 2019-20) or before commencement of a financial
year for the option to be effective from that financial year. The option cannot be
withdrawn within a period of 1 year from the date of exercise.

Government of India
Ministry of Finance
(Department of Revenue)

Notification No. 22/2019- Central Tax (Rate)

New Delhi, the 30th September, 2019

GSR 737(E).- In exercise of the powers conferred by sub-section (3) of section 9 of the
Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the
recommendations of the Council, hereby makes the following further amendments in
the notification of the Government of India, in the Ministry of Finance (Department of
Revenue), No.13/2017- Central Tax (Rate), dated the 28th June, 2017, published in the
Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R.
692(E), dated the 28th June, 2017, namely:-

In the said notification, in the Table, –

(i) for serial number 9 and the entries relating thereto, the following shall be substituted,
namely: –

(1) (2) (3) (4)

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

(ii) after serial number 9 and the entries relating thereto, the following serial number and
entries shall be inserted, namely: –

(1) (2) (3) (4)

“9A Supply of Author Publisher located in

services by an the taxable territory:Provided that nothing
author by way contained in this entry shall apply where, -(i) the
of transfer or author has taken registration under the Central
permitting the Goods and Services Tax Act, 2017 (12 of 2017),
use or and filed a declaration, in the form at Annexure I,
enjoyment of within the time limit prescribed therein,
a copyright with the jurisdictional CGST or SGST
covered under commissioner, as the case may be, that he
clause (a) of exercises the option to pay central tax on the
sub-section (1) service specified in column (2), under forward
of section 13 charge in accordance with Section 9 (1) of the
of the Central Goods and Service Tax Act, 2017 under
Copyright Act, forward charge, and to comply with all the
1957 relating provisions of Central Goods and Service Tax Act,
to original 2017 (12 of 2017) as they apply to a person liable
literary works for paying the tax in relation to the supply of any
to a publisher. goods or
services or both and that he shall not withdraw
the said
option within a period of 1 year from the date of
exercising such option;(ii) the author makes a
declaration, as prescribed in Annexure II on the
invoice issued by him in Form GST Inv-I to the
publisher. ”;

(iii) after serial number 14 and the entries relating thereto, the following serial numbers
and entries shall be inserted, namely: –
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 (1) (2) (3) (4)

“15 Services Any person other than a body corporate, Any body
provided by paying central tax at the rate of 2.5% on corporate
way of renting renting of motor located in the
of a motor vehicles with input tax credit only of taxable
vehicle input service in the same line of territory.
provided to a business
body
corporate.

16 Services of Lender i.e. a person who deposits the Borrower i.e. a

lending of securities registered in his name or in person who
securities the name of any other person duly borrows the
under authorised on his behalf with an securities
Securities approved intermediary for the purpose under the
Lending of lending under the Scheme
Scheme, 1997 Scheme of SEBI through an
(“Scheme”) of approved
Securities and intermediary
Exchange of
Board of India SEBI.”.
(“SEBI”), as
amended.

2. This notification shall come into force on the 1 st day of October, 2019.

Annexure I

FORM

(9A of Table)

(Declaration to be filed by an author for exercising the option to pay tax on the “supply of
services by an author by way of transfer or permitting the use or enjoyment of a
copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright Act,
1957 relating to original literary works to a publisher” under forward charge on or before
31.10.2019 for the option to be effective from 1.11.2019 or before the commencement of
any Financial Year for the option to be effective from the commencement of that
Financial Year.)

Reference No._______________

Date ______________

To
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____________

____________

____________

(To be addressed to the jurisdictional Commissioner)

1. Name of the author:

2. Address of the author:

3. GSTIN of the author:

Declaration

1. I have taken registration under the Central Goods and Services Tax Act, 2017 (12 of
2017), and I hereby exercise the option to pay central tax on the service specified against
serial No. 9A in column (2) of the Table in the notification No. 13/2017 – Central Tax
(Rate), dated the 28th June, 2017, supplied by me, under forward charge in accordance
with section 9 (1) of CGST Act, and to comply with all the provisions of CGST Act, 2017 (12
of 2017) as they apply to a person liable for paying the tax in relation to the supply of any
goods or services or both;

2. I understand that this option, once exercised, shall not be allowed to be changed
within a period of 1 year from the date of exercising the option and shall be valid, at
least, till the end of Financial Year following the year in which it is made.

Signature ________________
Name ___________________
GSTIN _________________

Place __________________
Date ______________________

Annexure II

(Declaration to be made in the invoice by the author exercising the option to pay tax on
the “supply of service by an author by way of transfer or permitting the use or enjoyment
of a copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright
Act, 1957 relating to original literary works to a publisher” under forward charge.)

Declaration
(9A of Table)

I have exercised the option to pay central tax on the service specified against serial No.
9A in column (2) of the Table in the notification No. 13/2017-Central Tax (Rate) dated
28th June, 2017 under forward charge.

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[F. No.354/1 36/2019 -TRU]

(Ruchi Bisht)
Under Secretary to the Government of India

Note: -The principal notification No. 13/2017 – Central Tax (Rate), dated the
28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R.
692 (E), dated the 28 th June, 2017 and was last amended by notification No. 5/2019 –
Central Tax (Rate), dated the 29th March, 2019 vide number G.S.R. 252(E), dated the
29th March, 2019.

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