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Compulsory payment of GST under Reverse Charge.

As per Notification No.10/2017 relating to payment of IGST and Notification No. 13/2017 relating to payment of CGST and SGST on a reverse charge basis by the recipient, some category of supply of services are covered till now.

Under the GST regime too there are certain expenses on which the recipient is liable to pay tax on a reverse charge basis like we had seen under Service tax and VAT regime. Moreover the taxes in these are first to be paid in cash and then Input tax can be availed except for those credits which are not available as per the provisions of section 17(5) i.e. Blocked credits. Lets look at some of these expenses on which GST is to be paid on a reverse charge basis.


Category of Supply of 'Services'

Recipient of Service and tax payable by

Any service supplied by any person who is located in a non-taxable territory to any person other than non-taxable online recipient.(Applicable for IGST only)

Any person located in the taxable territory other than non-taxable online recipient.

Supply of Services by a goods transport agency (GTA) in respect of transportation of goods by road to-

(a) any factory registered under or governed by the Factories Act, 1948(63 of 1948);or

(b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or

(c) any co-operative society established by or under any law; or

(d) any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Ac t; 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.

(a) Any factory registered under or governed by the Factories Act,1948(63 of 1948); or

(b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or

(c) any co-operative society established by or under any law; or

(d)any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; or

(e) (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.

Services supplied by an individual advocate including a senior advocate by way of representational services before any court, tribunal or authority, directly or indirectly, to any business entity located in the taxable territory, including where contract for provision of such service has been entered through another advocate or a firm of advocates, or by a firm of advocates, by way of legal services, to a business entity.

Any business entity located in the taxable territory.

Services supplied by an arbitral tribunal to a business entity.

Any business entity located in the taxable territory.

Services provided by way of sponsorship to anybody corporate or partnership firm.

Any body corporate or partnership firm located in the taxable territory.

Services supplied by the Central Government, State Government, Union territory or local authority to a business entity excluding, -

i. renting of immovable property, and

ii. services specified below-

- 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, State Government or Union territory or local authority;

- services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;

- transport of goods or passengers.

Any business entity located in the taxable territory

Services supplied by a director of a company or a body corporate to the said company or the body corporate.

The company or a body corporate located in the taxable territory.

Services supplied by an insurance agent to any person carrying on insurance business.

Any person carrying on insurance business, located in the taxable territory.

Services supplied by a recovery agent to a banking company or a financial institution or a non- banking financial company.

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

Services supplied by a person located in non- taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India.

Importer, as defined in clause (26) of section 2 of the Customs Act, 1962(52 of 1962), located in the taxable territory.

Supply of services by an author, music composer, photographer, artist or the like 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, dramatic, musical or artistic works to a publisher, music company, producer or the like.

Publisher, music company, producer or the like, located in the taxable territory


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' means body corporate or corporation includes a company incorporated outside India but does not include –

i. a co-operative society registered under any law relating to co-operative societies; and

ii. any other body corporate (not being a company as defined in this Act), which the Central Government may, by notification, specify in this behalf.

c. Senior Advocate means a designation that can be conferred on lawyers in the Supreme Court or high courts. It is a recognition of their superior ability and their standing at the bar.

Disclaimer: The views expressed in this article are strictly personal. The content of this document are solely for informational purpose. It doesn’t constitute professional advice or recommendation. The Author does not accept any liabilities for any loss or damage of any kind arising out of information in this article and for any actions taken in reliance thereon.

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