Idt 4

THE IDT CONCISE BOOK (NOV/DEC 2022) – CA MAYANK TRIVEDI
Since invoice is issued within the prescribed time limit, earlier of

the date of issue of invoice (30.09.2021) or date of receipt of
100%
payment (20.09.2021), i.e. 20.09.2021 IS THE TIME OF
SUPPLY.
Revision Video of Entire IDT will be available on YouTube Channel – CA Mayank Trivedi PAGE 31
4. REVERSE CHARGE MECHANISM
1. Supply of services by a Goods Transport Agency (GTA) in

respect of transportation of goods by road
GTA
A.
GTA pay GST @ 12% (6+6), with GTA pay GST @5% (2.5+2.5)
full ITC without ITC
Service to Service to
Registered Unregistere Registered Unregistered

Person d Person Person Person
Forward Notified Notified

Others Others
Charge Person RCM Person
Forward RCM Exempt

Exempt
Charge
NOTIFIED PERSON
1. Factory 5. Body corporate

2. Society 6. Any partnership firm
3. Co-operative society 7. Any casual taxable person.
4. Any person registered under Located in taxable territory
the CGST Act or the IGST Act
or the SGST Act or the UTGST
Act
B. GTA SERVICE TO GOVERNMENT/Local authority which has taken registration

under the CGST Act only for the purpose of DEDUCTING TAX UNDER SECTION 51
and not for making a taxable supply of goods or services - GTA Service EXEMPT
C. GTA Service EXEMPT Transportation of goods by GTA where Consideration
upto Rs. 1500 of Upto Rs. 750 for single

consignment in single consignee
carriage
D. GTA Service EXEMPT
Transportation of goods by GTA
Relief Newspaper
Defence Milk,Salt,Food Organic Agriculture
Material & Magazine
Equipment grain,Flour,Pulse Manure - Produce
for Victim
or Rice Fertilizer
2. Renting of Motor Vehicles.
Renting of Motor Vehicles
MV designed to carry Goods MV designed to carry Passengers
Where supplier opting Where supplier opting for 5% GST, with

Forward for 12% GST Limited ITC
Charge
Consideration does not Consideration does include
Forward cost of Fuel
Charge include cost of Fuel
Supplier Supplier other

Forward Body than Body
Charge Corporate Corporate
Forward Service to Service to

Charge Body Person
Corporate other than
5 Conditions - for RCM Body
Corporate
RCM
1. Supplier - other than BC
Forward
Charge
2. Recipient - BC
3. Consideration include cost of fuel
4. Passenger Transport
5. Supplier Opt GST @ 5%
3. Reserve Bank of India (RBI)

• All Service Supplied BY RBI – EXEMPT
• All Service Supplied to RBI - By
 Others - FORWARD CHARGE
 Overseeing Committee - RCM - RBI liable to pay GST
 Outside India - EXEMPT
4. Lawyer/Arbitral Tribunal
Service to
Non CG/SG/LA Business

Supplier - Senior Advocate
Business Entity
Receipent - Another
Entity
Exempt Advocate/Firm (incl -
Agg T/O of Agg T/O Senior Advocate)
Exempt business entity make it liable
in preceeding FY for
make it eligible Agg T/O of
Registration Agg T/O
for Exemption Firm/Advocate
in preceeding FY make it
from Registration
RCM make it eligible liable for
(Busniess for Exemption Registratio
Exempt Entity n
from
liable to Registration
pay tax)
RCM
Exempt
5. Government.
All Service provided by CG/SG/UT/LA - EXEMPT
Except
To Renting of Immovable To any person -

Property Always Forward
Business Entity in Business Entity Charge
in Non taxable Service Service
taxable territory
territory provided to provided to Services by the
Registered Un- Department of
RCM (BE Person Registered Posts
liable to pay Forward Person
GST) Charge RCM (Reg Services in
Person Forward
relation to an
liable to Charge
aircraft or vessel
pay GST)
Transport of
goods or
passengers;
6. Art/Drama/Movie/Books.
1. Supply of Service by way of transfer of Copyright Relating to
Dramatic
RCM
To (Music co.,
1. Music company, Musical Producer, liable
2. Producer to Pay GST)
Artistic
works
2. Supply of Service by way of transfer of Copyright Relating to - BOOKS -To Publisher

2 Option
Generally RCM - 1. Author is Registered

(Publisher Liable to Pay 2. Author makes a declaration to publisher in Form INV - 1
GST) 3. Author is laible to pay GST under Forward Charge
4. Publisher not liable to pay GST
5. Author shall not withdraw the said option within a
period of 1 year from the date of exercising such option
7. Remuneration to Director.
Remuneration paid to
Independent Whole-time Directors including Managing Director

Directors
Contract of Contract for TDS Deduction under Income Tax

RCM Service Service
Deducts TDS Deducts TDS

RCM Transaction in u/s 194J
u/s 192
nature of
employment
services, thus Transaction in RCM
not leviable to nature of
tax employment
services, thus
not leviable to
tax
8. Others.
Service By To Person Liable
1. Insurance Agent Service Insurance Insurance Company Insurance

Agent Company
2. Recovery Agent Service Recovery Agent 1. Banking company 1. Banking
2. NBFC company
2. NBFC
3. Direct Selling Agents Individual 1. Banking company 1. Banking

(DSAs) Direct Selling 2. NBFC company
Agents (DSAs) 2. NBFC
OTHER THAN
A BODY
CORPORATE, &
FIRM
4. Business facilitator Business Banking company Banking

facilitator company
5. Agent of business Agent of Business Business

correspondent business Correspondent Corresponden
correspondent t
6. Security Services (IMP) Any Person Registered Person Registered

OTHER THAN other than Person other
BODY composition than
CORPORATE dealer composition
dealer
7. Sponsorship Service Any Person Body corporate Body

(IMP) or Firm corporate or
Firm
8. Transfer of development Any person Promoter Promoter

rights or Floor Space Index
(FSI) (including additional
FSI) for construction of a
project by a promoter
Raj sponsored a dance competition organized by ‘Pinto’s Dance Academy’; a dance
school run by an individual (Mr. Prashanth). The dance competition was named as ‘Raj
Dance Floor’ by ‘Pinto’s Dance Academy’. Who is liable to pay GST in this case?
In the given case sponsorship service provided to an individual (Mr. Raj) the person
LIABLE TO PAY GST will be supplier of service i.e., ‘PINTO’S DANCE ACADEMY’.
9. RCM- IGST. (Following additional services are also

notified by notification for reverse charge under
IGST)
Service By To Person
Liable
1. Import Service Any Person from 1. Any Person – RCM

Non-Taxable 2. NTOR – -
Territory FORWARD CHARGE
2. Services supplied Any Person from Importer Importer

by a person located in Non-Taxable
non-taxable territory
Territory
by way of vessel from
a place outside India
up to the customs
station of clearance in
India
10. RCM- 9(4) CGST ACT 2017.
Service By To Person Liable
(i) Supply of Specified Goods
(ii) By Unregistered Person
(iii) To Specified Registered
Person
1. Cement Unregistered Promoter Promoter

Person (28%)
2. Capital Goods Unregistered Promoter Promoter

Person (NOTIFIED
RATES)
3. Value of Input or Input Unregistered Promoter Promoter

service, purchased from Person (18%)
registered supplier is less than
80% (Jitna 80% se Kum ha
bas usme RCM Ayega)
11. RCM- 9(5) CGST ACT 2017
Passenger tarnsport
service by Cab/motor
cycle - or any other
RCM - ECO liable
motor vehicle- through
to pay GST
ECO - E.g. Ola / Red bus
(AMENDMENT – NOV
2022)
Forward Charge
1. Service by way Supplier liable to
(supplier himself
of providing Registered
liable to pay GST)
accomodation in
hotel/inn/guest
9(5) - ECO house Supplier is not RCM
2. House keeping liable to (ECO Liable to pay
service Registered GST)
Supply of restaurant service [other than

the services supplied by restaurant,
eating joints etc. located at premises
having hotel accommodation charges Always ECO shall
declared tariff >= Rs. 7,500 per day] - be liable to pay
(E.g. Swiggy Zomato) tax
(AMENDMENT – NOV 2022)
(AMENDMENT – NOV/DEC 2022)
Clarification on applicability of GST on service supplied by restaurants through e-

commerce operators
1. There would be NO REQUIREMENT OF TAKING SEPARATE REGISTRATION by

ECOs for payment of tax on restaurant service under section 9(5) of the CGST Act,
2017.
2. The PERSON providing restaurant service through ECO shall include SUCH
SERVICES IN HIS AGGREGATE TURNOVER.
3. Supplies of restaurant service made through ECOs shall NOT BE CONSIDERED AS
INWARD SUPPLIES OF ECOS since ECOs are not the recipient of restaurant
service supplied through them. Accordingly, since these are not input services to
ECO, these are NOT TO BE REPORTED AS INWARD SUPPLY (liable to reverse
charge) in GSTR-3B.
4. It may be noted that on restaurant service, ECO SHALL PAY THE ENTIRE GST
LIABILITY IN CASH i.e. input tax credit cannot be utilised for payment of GST on
restaurant service supplied through ECO.
5. Where a restaurant provides ‘RESTAURANT SERVICE’ AS WELL AS OTHER GOODS
and services through an ECO under the same order, it is ADVISABLE THAT THE
ECO RAISES SEPARATE BILL ON RESTAURANT SERVICE.
6. THE INVOICE in respect of restaurant service supplied through ECO under section
9(5) will be ISSUED BY THE ECO.
7. In respect of supplies NOT NOTIFIED UNDER SECTION 9(5) but supplied through
ECO, the LIABILITY TO PAY GST CONTINUES TO BE ON THE SUPPLIER.
Therefore, ECO shall continue to pay TCS on such supplies u/s 52 of CGST Act.
8. ECOs provide their own services as an electronic platform and an intermediary for
which it would acquire inputs/input service on which ECOs avail input tax credit
(ITC). The ECO charges commission/fee etc. for the services it provides. The ITC
is utilised by ECO for payment of GST on services provided by ECO on its own
account (say, to a restaurant). The situation in this regard remains unchanged even
now and ECO would be eligible to ITC as before. Accordingly, it is clarified that
ECO SHALL NOT BE REQUIRED TO REVERSE ITC ON ACCOUNT OF
RESTAURANT SERVICES ON WHICH IT PAYS GST in terms of section 9(5) of the
Act.
9. Reporting Requirements:
 The ECO, on services notified under section 9(5) of the CGST Act, 2017,
including on restaurant service, may continue to pay GST by FURNISHING THE
DETAILS IN FORM GSTR 1 & 3B, REPORTING THEM AS OUTWARD TAXABLE
SUPPLIES FOR THE TIME BEING.
 REGISTERED PERSONS supplying restaurant services through ECOs under section
9(5) SHALL REPORT SUCH SUPPLIES OF RESTAURANT SERVICES MADE
THROUGH ECOS AS EXEMPT SUPPLY IN FORM GSTR-1 & FORM GSTR-3B,
FOR THE TIME BEING.
5. REGISTRATION
1. Section - 23 - Persons not liable for registration
Non-Taxable
Supply
1. Person
engaged
exclusively in
Wholly Exempt
Supply
1. Exclusively
engaged in
2. Specified outward supply - • If turnover
category of Taxable under more than
persons notified RCM 20/10 -
by the Complusory
Government. 2. Job Work Registration
making Inter- Exception
state Supply • Jobwork in
relation to
Goldsmith,
3. Agriculturist Sliversmith,
Jewellery
Example
Madhur Oils, Punjab, is exclusively engaged in supplying petrol. Supply of petrol is not
leviable to GST. Thus, Madhur Oils is not liable for registration as it is engaged
exclusively in supplying goods not leviable to tax.
2. Section - 22 - Persons Liable for registration
If Aggregate Turnover of Taxable Supply Exceed Threshold
M2NT Megha, Arun or

Te Pu Sikkim gaye HAJ & Other States (Himachal
Pradesh,
10 Lakhs
Intra-State
Jammu
20 lakh Others
supply of and
(Meghalaya,
GOODS only Kashmir,
(Mizoram, (Not Service
Manipur, Arunachal or Notified
20 Lakhs Assam &
Nagaland, Pradesh goods {PIT}) Other
Tripura) Telangana,
Puducherry
States)
Uttarakhand, 40 Lakhs
Sikkim) (NN 10/2019)

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Idt 4

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THE IDT CONCISE BOOK (NOV/DEC 2022) – CA MAYANK TRIVEDI

Since invoice is issued within the prescribed time limit, earlier of

4. REVERSE CHARGE MECHANISM

1. Supply of services by a Goods Transport Agency (GTA) in

Registered Unregistere Registered Unregistered

Forward Notified Notified

Forward RCM Exempt

1. Factory 5. Body corporate

B. GTA SERVICE TO GOVERNMENT/Local authority which has taken registration

C. GTA Service EXEMPT Transportation of goods by GTA where Consideration

upto Rs. 1500 of Upto Rs. 750 for single

D. GTA Service EXEMPT

Transportation of goods by GTA

2. Renting of Motor Vehicles.

Renting of Motor Vehicles

MV designed to carry Goods MV designed to carry Passengers

Where supplier opting Where supplier opting for 5% GST, with

Supplier Supplier other

Forward Service to Service to

3. Consideration include cost of fuel

5. Supplier Opt GST @ 5%

3. Reserve Bank of India (RBI)

Non CG/SG/LA Business

To Renting of Immovable To any person -

2. Supply of Service by way of transfer of Copyright Relating to - BOOKS -To Publisher

Generally RCM - 1. Author is Registered

Independent Whole-time Directors including Managing Director

Contract of Contract for TDS Deduction under Income Tax

Deducts TDS Deducts TDS

Service By To Person Liable

1. Insurance Agent Service Insurance Insurance Company Insurance

2. Recovery Agent Service Recovery Agent 1. Banking company 1. Banking

3. Direct Selling Agents Individual 1. Banking company 1. Banking

4. Business facilitator Business Banking company Banking

5. Agent of business Agent of Business Business

6. Security Services (IMP) Any Person Registered Person Registered

7. Sponsorship Service Any Person Body corporate Body

8. Transfer of development Any person Promoter Promoter

9. RCM- IGST. (Following additional services are also

1. Import Service Any Person from 1. Any Person – RCM

2. Services supplied Any Person from Importer Importer

10. RCM- 9(4) CGST ACT 2017.

Service By To Person Liable

(i) Supply of Specified Goods

(ii) By Unregistered Person

(iii) To Specified Registered

1. Cement Unregistered Promoter Promoter

2. Capital Goods Unregistered Promoter Promoter

3. Value of Input or Input Unregistered Promoter Promoter

11. RCM- 9(5) CGST ACT 2017

Supply of restaurant service [other than

(AMENDMENT – NOV/DEC 2022)

Clarification on applicability of GST on service supplied by restaurants through e-

1. There would be NO REQUIREMENT OF TAKING SEPARATE REGISTRATION by

2. Section - 22 - Persons Liable for registration

If Aggregate Turnover of Taxable Supply Exceed Threshold

M2NT Megha, Arun or

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