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revese charge

Rekha Sharma (95 Points)

28 August 2018

plz sir give me details reverse charge

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4 Replies

Pankaj Rawat (GST Practitioner) (55042 Points)
Replied 28 August 2018

Kindly refer Notification 13/2017 CT (R).
As on today RCM is applicable only on the services fall under 9(3) , ie, GTA, Advocate, insurance agent to insurance co. , recovery agent to bank, Payment to parties director of co. etc
As per notification 43/2017(r) , Raw cotton purchase from aggriculurist

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Pranjali (intern) (2216 Points)
Replied 28 August 2018

Reverse charge is a mechanism to increase tax revenues. Here the supplier is liable to collect tax on goods and services. Now when this person becomes liable to pay taxes under reverse charge, he can avail input credit charges.

Pankaj Rawat (GST Practitioner) (55042 Points)
Replied 28 August 2018

Reverse charge is a mechanism where the recipient of the goods and/or services is liable to pay GST instead of the supplier.

And the GST deposited by recipient on RCM can be claim as ITC . There 2 sections which define RCM on goods & services
1. Section 9(4) : purchase from URD, but this section being deferred till 30/9/2019
2. Secrion 9(3): Services eing define by notification (As mention by me)

Vinod Babu (24191 Points)
Replied 28 August 2018

Provision of section 9(4)- liability of GST under reverse charge on inward supply from unregistered has only been deffered till 30th Sep 2019.
but Services covered under section 9(3) ie GTA, Advocate Services when avail , the RCM has to be done .