List of Goods and services under RCM in GST 2024

List of Services Under Reverse Charge as Approved By GST Council. Revised and upto date list of services covered. Categories of supply of services where GST is to be paid on reverse charge basis. List of Services under Reverse Charge Mechanism (RCM). Notified Goods and Services Under Reverse Charge in GST Acts, GST Reverse Charge Chart in PDF Format. GST Reverse Charge Chart in PDF. 

We have compiled two notifications, in relation to Reverse Charge mechanism in the GST Acts, issued by the Central Government on the recommendation of the GST Council. One is notifying certain goods on supply of which tax shall be borne by the recipient of such goods and the other is notifying certain services on supply of which tax shall be borne by the recipient of such services.

Following goods have been notified by the Central Government where the recipient of goods shall be liable to pay GST under RCM:-

Sr. No. Description of supply of services Supplier of services Recipient of services GST Rates 1 Goods Transport Agency (GTA) services by road Goods Transport Agency Any factory, society, cooperative society, registered person under GST, body corporate, partnership firm including AOP, casual taxable person located in the taxable territory 5% Note:

  • Notification No. 22/2017- CT (Rate) w.e.f. 22.08.2017 – If GTA opts to charge GST in his invoice and pays GST @ 12%, the recipient is not liable to pay GST under RCM.
  • Notification No. 32/2017- CT (Rate) dated 13.10.2017:- Services provided by GTA to an unregistered person (other than factory, society, co-operative society, body corporate, partnership firm, registered casual taxable person) shall be exempt from GST.
  • If a department of central/ state government/ union territory or local authority etc. (who has obtained registration under GST as TDS deductor) receives services of transportation by road from GTA, no GST is payable thereon.
2 Legal services provided directly or indirectly, by advocate including a senior advocate or firm of advocates An individual advocate including a senior advocate or firm of advocates Any business entity located in the taxable territory shall be liable under reverse charge @ 18%. 18% Note: –

  • Meaning of Legal services: – ‘Legal services’ means any service provided in relation to advice, consultancy or assistance in any manner and includes representational services before any court, tribunal or authority.
  • Notification No. 12/2017- CT (Rate) dated 28-06-2017: – Legal services provided to a person other than business entity is fully exempted from GST. Further, Legal services provided to a business entity with turnover up to Rs. 20 Lakhs (Rs. 10 Lakhs in special category states) in preceding financial years shall also be exempted.
  • Services provided by senior advocate to any other advocate or firm of advocates are not exempt and are liable for GST under forward charge mechanism.
  • Firm of Advocates includes LLP registered under LLP Act, 2008.
3 Services provided by an arbitral tribunal to a business entity An Arbitral Tribunal Any business entity located in the taxable territory. 18%
  • Notification No. 12/2017- CT (Rate) dated 28-06-2017: – Services provided by arbitral tribunal to a person other than business entity or to a business entity with aggregate turnover of up to Rs. 20 Lakhs (Rs. 10 Lakhs in special category states), shall be exempt from GST.
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4 Sponsorship services provided to any Body corporate or partnership firm Any person Any Body Corporate or partnership firm located in taxable territory. 18% 5 Services supplied by the Central Government, State Government, Union Territory or local authority to a business entity excluding:

  • Renting of immovable property
  • Services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Central Government
  • Services in relation to an aircraft or vessel, inside or outside the precincts of a port or airport
  • Transport of goods or passengers
Central or State Government, Union Territory, Local Authority Any Business Entity located in the taxable territory. 18% 5A Renting of immovable property services by Central Government, State Government, Union Territory or Local Authority to a person registered under GST Central or State Government, Union Territory, Local Authority Any person registered under GST 18% 5B Transfer of development rights or Floor Space Index (FSI) (including additional FSI) for construction of a project Any Person Promoter 18% Note:
Notification No. 6/2019- CT (Rate) w.e.f. 01-04-2019: – GST on development rights/ FSI to be paid by promoter w.e.f. 01-04-2019 under reverse charge. 5C Long Term Lease (30 years or more) by any person against consideration in the form of upfront amount (called as premium, salami, cost, price, development charges or by any other name) and/ or periodic rent for construction of a project by a promoter. Any Person Promoter 18% Note:
Notification No. 6/2019- CT (Rate) w.e.f. 01-04-2019: – GST on long term lease by any person for construction project by a promoter shall be payable under reverse charge w.e.f. 01-04-2019 @18%. 6 Services supplied by a director of a company or a body corporate to the said company or body corporate A director The company or body corporate located in the taxable territory. 18% 7 Services by an insurance agent to any person carrying on insurance business Insurance Agent Any person carrying on insurance business 18% 8 Recovery Agent Services to a bank or financial institution or NBFC Recovery Agent Bank or Financial Institution or NBFC 18% 9 Copyright services by a music composer, photographer, artist or like relating to original dramatic, musical or artistic works to a music company, producer or the like Music Composer, Photographer, artist or the like Music Company, producer or the like located in the taxable territory 12% 9A Supply of services by an author by way of transfer or permitting the use or enjoyment of a copyright covered under the Copyright Act, 1957 relating to original literary works to a publisher Author of original literary work Publisher located in the taxable territory. 12% Note: –

  • If the author is registered under CGST Act, he can exercise the option to pay tax under forward charge. For this, he will have to file a declaration in form at Annexure-I that he exercises the option to pay tax under forward charge and that he shall not withdraw the option within a period of 1 year from the date of exercising such option. Further, the author will have to make declaration in the invoice issued by him in Form Inv-1 to the publisher.
  • This entry has been inserted w.e.f. 01-10-2019. This means that till 01-10-2019, the above service was only covered under reverse charge mechanism.
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10 Supply of services by the members of Overseeing committee to RBI Members of Overseeing Committee constituted by RBI Reserve Bank of India 18% 11 Supply of services by individual Direct Selling Agents (DSA) other than a body corporate, partnership or LLP to a bank or NBFC Individual DSA other than a body corporate, partnership or LLP to a bank or NBFC Banking company or NBFC located in taxable territory 18%
Inserted by Notification No. 15/2018- CT (Rate) dated 26.07.2018 12 Services provided by a business facilitator to a banking company Business Facilitator Banking company located in taxable territory 18%
Inserted by Notification No. 29/2018- CT (Rate) dated 31.12.2018 13 Services provided by an agent of business correspondent to business correspondent An agent of business correspondent Business Correspondent located in taxable territory 18%
Notification No. 29/2018- CT (Rate) dated 31.12.2018 14 Security services (by way of supply of security personnel) Any person other than body corporate Registered Person 18%
Notification No. 29/2018- CT (Rate) dated 31.12.2018 Note:
Nothing contained in this entry shall apply to: –

  • A department or establishment of Central/ State Government or Union Territory or local authority or Government agencies, who have taken registration as ‘Tax Deductor’ u/s 51 of CGST Act and not for supply of goods or services and
  • Registered person registered under Composition Scheme u/s 10 of CGST Act.
15 Services provided by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient Any person other than body corporate, who supplies the service to a body corporate and does not issue an invoice charging CGST @ 6% plus SGST to the service recipient Any body corporate located in the taxable territory 5% Note:
The above entry has been inserted by Notification No. 22/2019- CT (Rate) dated 30.09.2019. It has been further amended Notification No. 29/2019- CT(Rate) dated 31.12.2019. 16 Services of lending of securities under Securities Lending Scheme, 1997 of SEBI Lender i.e. a person who deposits the securities registered in his name or in the name of any other person duly authorised on his behalf with an approved intermediary for the purpose of lending under the scheme of SEBI Borrower i.e. a person who borrows the securities under the scheme through an approved intermediary of SEBI 18%
Notification No. 22/2019- CT (Rate) dated 30.09.2019
 

All the goods and services notified for RCM purposes have also been notified under IGST Act. Further, the following additional services are also notified under IGST Act for levy of IGST under reverse charge: –

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(a)The person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this notification.

(b) “Body Corporate” has the same meaning as assigned to it in clause (11) of section 2 of the Companies Act, 2013.

(c) the business entity located in the taxable territory who is litigant, applicant or petitioner, as the case may be, shall be treated as the person who receives the legal services for the purpose of this notification. (

d) the words and expressions used and not defined in this notification but defined in the Central Goods and Services Tax Act, the Integrated Goods and Services Tax Act, and the Union Territory Goods and Services Tax Act shall have the same meanings as assigned to them in those Acts.

(e) A “Limited Liability Partnership” formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (6 of 2009) shall also be considered as a partnership firm or a firm.

(f) “insurance agent” shall have the same meaning as assigned to it in clause (10) of section 2 of the Insurance Act, 1938 (4 of 1938).

(g) “renting of immovable property” means allowing, permitting or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property.’.

(h) Provisions of the Notification No. 29/2018- Central Tax (Rate), in so far as they apply to the Central Government and State Governments, shall also apply to the Parliament and State Legislatures

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