Comprehensive Guide to Reverse Charge under GST(Pre-order Book Launch)

by Dhruv Dedhia, Vinay Kumar J, Rajesh Maddi

Chapter 1— Reverse Charge under GST – An Introduction

1.1 What is Reverse Charge Mechanism?	1
1.2 Need for Reverse Charge Mechanism	1
1.3 A wrong step towards the Reverse Charge	2
1.4 Reintroducing the Reverse Charge Properly	3
1.5 A Paramount Implementation of Reverse Charge:	5
1.6 Revamping the Reverse Charge in GST	6
1.7 Advantages of Reverse Charge	6
1.8 Types of Levies under Indirect Taxes	7
1.8.1 Forward Charge	7
1.8.2 Reverse Charge	8
1.8.3 Levy on Third Party	8
1.8.4 Joint Charge	8
1.9 Sections 9(3) vs 9(4) vs 9(5)	8
1.10 Concept of Composite Supplies & Mixed Supplies	9
1.10.1 Composite Supply	9
1.10.2 Mixed Supply	11
1.11 RCM Supplies made to SEZ Unit or SEZ Developer	11
1.12 Transitional Provisions	13
1.13 Exemptions under GST – Whether applicable to Recipient?.	13
1.14 Supplier deposits the GST on supplies taxable under RCM	14
1.15 Reverse Charge for Casual Taxable Persons	14

Chapter 2— Time of Supply for Services under Reverse Charge

2.1 Introduction	16
2.2 Point of taxation under Erstwhile Regime	16
2.3 Time of Supply in GST	17
2.4 Issuance of invoice for time of supply.	19
2.5 Timeline for issuance of invoice	19
2.6 Date of payment for time of supply	20
2.7 Associated Enterprises	20
2.8 Provision of service – Time of Supply?	22
2.9 Residual Time of Supply	23
2.10 Conclusion	24

Chapter 3— List of Goods and Services under RCM in GST

3.1 Extract of Notification No. 13/2017 – CT (Rate) as amended from time to time	25
3.2 Extract of Notification No. 07/2019 – CT (Rate) as amended from time to time	36
3.3 Extract of Notification No. 04/2017 – CT (Rate) as amended from time to time	37
3.4 List of Services covered under Reverse Charge under Service Tax Regime (Extract of Notification No. 30/2012 – Service Tax as amended from time to time)	39

Chapter 4— Goods Transport Agency Services

4.1 Introduction	44
4.2 Under Earlier Regime	44
4.3 Entry under GST Regime (w.e.f. 01st July, 2017)	45
4.4 Exemptions	47
4.5 Analysis of Service	48
4.5.1 What is Goods Transport Agency (GTA)?	48
4.5.2 What is a Consignment Note?	49
4.5.3 Cases where Consignment Note is not issued	50
4.5.4 Difference between GTA and GTO	51
4.6 Supplier of service	53
4.7 Recipient of Service	56
4.7.1 Whether consigner or consignee would be Recipient of service?.	56
4.7.2 Specified Recipient	57
4.5.5 History of GST on GTA Services from 01.07.2017 to 17.07.2022	61
4.8 Exemptions for GTA	64
4.8.1 Services by Individual Truck Operators (Goods Transport Operators)	64
4.8.2 Services to Individuals/ Proprietorship Firm/ HUFs/ CTP	65
4.8.3 Specified TDS Deductors	65
4.8.4 Transport of Certain Goods	67
4.8.5 Transport where the consideration is below threshold limit – Applicable till 17.07.2022	67
4.8.6 Vehicles procured by GTA on hire basis	69
4.9 Valuation	69
4.9.1 Loading & Unloading Charges collected by GTA	69
4.9.2 Supply of goods along with transportation	70
4.10 Flow Chart	70
4.11 Place of Supply	70
4.12 Some Important Aspects	72
4.12.1 CHA paid for GTA service	72
4.13 Issues and Solutions	72
4.14 Judicial Pronouncements	74

Chapter 5— Legal Services by an Advocate

5.1 Introduction	78
5.2 Under Earlier Regime	78
5.3 Entry under GST Regime (w.e.f. 01st July, 2017)	80
5.4 Exemptions	81
5.5 Analysis of Service	81
5.5.1 Supplier of Service	82
5.5.1.1 Who is an Advocate?	82
5.5.1.2 Who is a Senior Advocate?	82
5.5.1.3 What is a firm of advocates?	83
5.5.2 Recipient of Service	83
5.5.3 Nature of Service	85
5.5.4 Lawyer v. Advocate	86
5.5.5 Services of Different Advocates	87
5.5.5.1 Attorney General or Advocate General	87
5.5.5.2 Advocate on Record	87
5.5.5.3 Foreign Lawyers	88
5.5.6 Exempted Legal Services	89
5.6 Flow chart	90
5.7 Valuation	90
5.8 Place of Supply	91
5.9 Judicial Pronouncements	91
5.10 FAQs Answered	92

Chapter 6— Arbitral Tribunal Services

6.1 Introduction	94
6.2 Under Earlier Regime	94
6.3 Entry under GST Regime (w.e.f. 01st July, 2017)	94
6.4 Exemptions	95
6.5 Analysis of Service	95
6.5.1 A Brief on Arbitration	95
6.5.2 Who can be an Arbitrator?	97
6.5.3 Analysing from GST Perspective	97
6.6 Flow Chart	98
6.7 Valuation	99
6.8 Place of Supply	99
6.9 FAQs Answered	99

Chapter 7— Sponsorship Services

7.1 Introduction	100
7.2 Under Earlier Regime	100
7.3 Entry under GST Regime (w.e.f. 01st July, 2017)	101
7.4 Exemptions	102
7.5 Analysis of Service	102
7.5.1 What is a Sponsorship Service?	102
7.5.2 Sponsorship v. Donation:	103
7.5.3 Sponsorship v. Advertising v. Sale of Space	104
7.6 Supplier of Service	105
7.7 Recipient of Service	106
7.7.1 Body corporate	106
7.7.2 Partnership firm	107
7.8 Valuation	107
7.9 Place of Supply	108
7.10 Judicial Pronouncements	109
7.11 FAQs Answered	109

Chapter 8— Government Services

8.1 Introduction	111
8.2 Under Earlier Regime	111
8.3 Entry under GST Regime (w.e.f. 01st July, 2017)	112
8.4 Exemptions	113
8.5 Analysis of Service	115
8.5.1 Whether activities of Government are considered to be supply?	115
8.5.1.1 Engaged as Public Authority	115
8.5.1.2 Services notified under Section 7(2)(b)	116
8.5.1.3 Services covered Exemption Entries, Reverse Charge, and Forward Charge	117
8.5.1.4 Scope of Supply vis-à-vis Activities of Government	118
A Taxes vs Fees	119
B Penalties & Fines levied by Government	121
8.5.1.5 License vs Registration	122
8.6 Supplier of Service	123
8.6.1 Central Government	123
8.6.2 What is State Government?	124
8.6.3 What is Union Territory?	125
8.6.4 What is Local Authority?	125
8.7 Exemption to Suppliers engaged exclusively in making Exempt Supplies	126
8.8 Flow Chart	127
8.9 Sovereign Functions	127
8.9.1 What are Sovereign Functions?	128
8.9.2 Taxability under Earlier Regime	128
8.9.3 Taxability under GST	130
8.10 Tax on Royalty – Tax or Tax on Tax?	131
8.10.1 Is Royalty a Tax?	131
8.10.2 Implication under Service Tax / GST	133
8.10.3 Situation under Service Tax	133
8.10.4 Situation under GST	134
8.11 Valuation	134
8.12 Place of Supply	135
8.13 Judicial Pronouncements	135
8.14 Advance Rulings	136

Chapter 9— Renting of Immovable Property by the Government

9.1 Introduction	139
9.2 Under Earlier Regime	139
9.3 Entry under GST Regime (w.e.f. 01st Feb, 2018)	141
9.4 Exemption	142
9.5 Analysis of Service	142
9.5.1 What is Renting of Immovable Property?	143
9.5.2 Is Renting an Immovable Property considered as a service?	145
9.5.3 What is an Immovable Property?	145
9.5.3.1 Meaning of Land	146
9.5.3.2 Benefits to arise out of land	147
9.5.3.3 Things attached to the earth	147
9.5.3.4 Whether trees are considered as Immovable Property?....148
9.5.4 Difference between Entry 5 and Entry 5A of Notification No. 13/2017 – CT (Rate	149
9.5.5 Additional point (Combining the Entry and Exemptions)	149
9.5.6 Renting of Immovable Property by Statutory Bodies	149
9.5.7 Registered Person v. Any person registered under the CGST Act	150
9.6 Flow Chart	151
9.7 Valuation	151
9.7.1 Other Charges	151
9.7.2 Refundable Deposits & Notional Interest	152
9.8 Place of Supply	152
9.9 Judicial Pronouncements	153
9.10 Advance Rulings	154
9.11 FAQs Answered	155

Chapter 10— Transfer of Development Rights or Floor Space Index

10.1 Introduction	156
10.2 Under Service Tax Regime	156
10.3 GST Implications Prior to 01.04.2019	157
10.4 Under GST Regime (w.e.f. 01st April, 2019)	158
10.5 Exemptions	158
10.6 Analysis of Service	159
10.6.1 Concept of TDR & FSI	159
10.6.1.1 What is Transfer of Development Rights?	159
10.6.1.2 What is Floor Space Index (FSI)?	160
10.6.1.3 What is Additional FSI?	161
10.6.2 Joint Development Agreement	161
10.6.3 Different Models in Joint Development Agreement	162
10.6.4 Development Right – An Immovable Property??	163
10.6.5 Exemption applicable to Residential Apartments	164
10.7 Supplier of Service	166
10.8 Recipient of Service	166
10.9 Valuation	167
10.10 Place of Supply	168
10.11 Time of Supply	169
10.12 ITC Eligibility of Tax paid under RCM	170

Chapter 11— Long-Term Lease of Land

11.1 Introduction	171
11.2 Under Earlier Regime	171
11.3 Entry under GST Regime	172
11.4 Exemptions	172
11.5 Analysis of Service	173
11.5.1 What is Lease?	174
11.5.2 Types of Leases	175
11.5.3 Leases under GST	176
11.5.4 What is Land?	177
11.5.5 Exemption applicable to Residential Apartments	178
11.6 Supplier of Service	178
11.7 Recipient of Servic	179
11.8 Valuation	180
11.9 Place of Supply	180

Chapter 12— Director Services

12.1 Introduction	182
12.2 Under Earlier Regime	182
12.3 Entry under GST Regime	183
12.4 Analysis of Service	183
12.4.1 Who is Director?	183
12.4.2 What is Body Corporate?	184
12.4.3 Is Company different from Body corporate?	184
12.4.4 Nature of service	185
12.4.4.1 Who is the Employee Director?	185
12.4.4.2 Executive Director v. Non-Executive Director	186
12.5.4.3 Whether salary paid to the director would be liable to GST?	187
12.5.4.4 Are all the services provided by the Executive Director taxable under Reverse Charge?	187
12.5.4.5 Services of Nominee Director	188
12.5 Flow Chart	189
12.6 Valuation	189
12.6.1 Whether consideration not provided exclusively in money for the director’s services would still be liable to GST under reverse charge?	190
12.7 Place of Supply	190
12.8 Judicial Pronouncements	191
12.9 FAQs Answered	191

Chapter 13— Supply of Security Personnel

13.1 Introduction	193
13.2 Under Earlier Regime	193
13.3 Entry under GST Regime (w.e.f. 01st January, 2019)	194
13.4 Exemptions	194
13.5 Analysis of Service	195
13.5.1 Nature of service	195
13.6 Supplier of Service	196
13.7 Recipient of Service	197
13.7.1 Specified TDS Deductors	198
13.7.2 Composition Dealers	200
13.7.3 Unregistered Persons	200
13.8 Flow chart	200
13.9 Valuation	200
13.9.1 Salary Payable to Security Personnel	201
13.9.2 Expenses incurred by the Recipient	202
13.10 Place of Supply	203
13.11 Judicial Pronouncements	205
13.12 Advance Rulings	206
13.13 FAQs Answered	206

Chapter 14— Renting of Motor Vehicle

14.1 Introduction	209
14.2 Under Earlier Regime	209
14.3 Exemptions	210
14.4 Analysis of Service	211
14.4.1 What is a Motor Vehicle?	211
14.4.2 Which vehicles are covered under the entry?	212
14.4.3 What is Renting?	213
14.4.4 Who is a Passenger?	214
14.4.5 Classification of Services relating to Renting of Motor Vehicle	215
14.5 Supplier of service	217
14.6 Recipient of Service	218
14.7 Important Aspects	220
14.7.1 Renting of Motor Vehicle v. Transportation Service	220
14.7.2 Is the ownership of a vehicle necessary?	221
14.7.3 Whether renting out caravan/ camper van fall under the reverse charge entry?	222
14.8 Exemption Analysis	222
14.8.1 Hiring to a State Transport Undertaking	222
14.8.2 Hiring of Vehicles to GTA	223
14.8.3 Hiring of vehicles for transporting Students & Staff	224
14.9 Flow Chart	224
14.10 Valuation	225
14.11 Place of Supply	225
14.12 Advance Rulings	226
14.13 FAQs Answered	226

Chapter 15— GST on Import of Services

15.1 Introduction	228
15.2 Under Earlier Regime	228
15.3 Entry under GST Regime (w.e.f. 01st July, 2017)	229
15.4 Exemptions	229
15.5 Analysis of Service	230
15.5.1 Import of Service	230
15.5.2 Import of service v. Entry under reverse charge	232
15.5.3 Location of the supplier of service	233
15.5.4 Location of the recipient of service	.235
15.5.5 Why are these services covered under IGST only but not under CGST & SGST?	236
15.6 Supplier of Service	236
15.7 Recipient of Service	237
15.8 Analysis of Exemptions	237
15.8.1 Services received for other than business	238
15.8.2 Services received by Charitable Institutions	238
15.8.3 Subscription to Online Journals	239
15.9 Valuation	239
15.10 An Insight on Different Services	241
15.10.1 Accommodation Services	241
15.10.2 Construction of Property & Related Services	241
15.10.3 Admission to an Event	242
15.10.4 Services of Transportation of Goods	242
15.10.5 Reimbursements of Branch Expenses	243
15.10.6 Secondment of Employees	244
15.10.7 Repair Services	245
15.10.8 Testing Services	245
15.10.9 Training Services	246
15.10.10 Intermediary Services	246
15.10.11 Design Services	247
15.10.12 Digital Advertising Services	248
15.11 Online Information Database Access or Retrieval Services	248
15.11.1 Definitions	248
15.11.2 Determination of location of the recipient of OIDAR services	250
15.11.3 Place of Supply of OIDAR Services	251
15.12 FAQs Answered	251
15.13 Conclusion	252

Chapter 16— Transportation of Goods by Vessel – Ocean Freight

16.1 Introduction	253
16.2 Under Earlier Regime	253
16.3 Entry under GST Regime (w.e.f. 01st July, 2017)	255
16.4 Exemptions	255
16.5 Analysis of Service	255
16.5.1 What is Ocean Freight?	256
16.5.2 Cost Insurance & Freight (CIF) Basis	256
16.5.2.1 Judgement of Gujarat High Court	259
16.5.2.2 Discussion in GST Council Meeting	259
16.5.2.3 Refund of Taxes already paid	259
16.5.2.4 Judgement of the Supreme Court – A Gamechanger	260
16.5.2.5 Amendments in GST Law	260
16.5.3 Free on Board (FOB) Basis	260
16.6 Supplier of Service	261
16.7 Recipient of Service	262
16.8 Flow Chart	263
16.9 Valuation	263
16.10 Place of Supply	264

Chapter 17— Renting of Residential Dwelling Services

17.1 Introduction	266
17.2 Under Earlier Regime	266
17.3 Entry under GST Regime (w.e.f. 18th July, 2022)	267
17.4 Exemptions	267
17.5 Analysis of Service	267
17.5.1 Scope of Renting	268
17.5.2 Residential Dwelling	268
17.5.3 Accommodation Service vs. Residence	269
17.5.4 Renting of Residential Dwelling till 17th July, 2022	270
17.5.5 Renting of Residential Dwelling from 18th July, 2022	270
17.6 Supplier of Service	271
17.7 Recipient of Service	271
17.8 Flow Chart	272
17.9 Valuation	272
17.10 Place of Supply	272
17.11 FAQs Answered	273

Chapter 18— Insurance Agent Services

18.1 Introduction	276
18.2 Under Earlier Regime	277
18.3 Entry under GST Regime (w.e.f. 01st July, 2017)	278
18.4 Analysis of Service	278
18.4.1 Who is an Insurance Agent?	278
18.4.2 Whether all the services provided by the Insurance Agent are covered under RCM? 280
18.5 Supplier of Service	281
18.5.1 Insurance Agent v. Insurance Broker	281
18.6 Recipient of Service	282
18.7 Valuation	282
18.7.1 Incentives Provided to Insurance Agent	283
18.8 Place of Supply	283
18.9 Judicial Pronouncements	284
18.10 FAQs Answered	285

Chapter 19— Recovery Agent Services

19.1 Introduction	286
19.2 Under Earlier Regime	286
19.3 Entry under GST Regime (w.e.f. 01st July, 2017)	287
19.4 Analysis of Service	287
19.4.1 Who is Recovery Agent?	287
19.4.2 What is a Banking Company?	288
19.4.3 What is a Financial Institution?	288
19.4.4 What is a Non-Banking Financial Company?	289
19.4.5 What does the Reverse Charge Entry say?	290
19.4.6 What happens if the debt recovery is outsourced to an Institution?	290
19.5 Valuation	290
19.6 Place of Supply	290
19.7 Judicial Pronouncements	291
19.8 FAQs Answered	291

Chapter 20— Transfer or Permitting Use of Copyright

20.1 Introduction	293
20.2 Under Earlier Regime	293
20.3 Entry under GST Regime (w.e.f. 01st July, 2017)	295
20.4 Analysis of Service	295
20.4.1 What is Copyright?	295
20.4.2 Definitions as per Copyright Act, 1957	296
20.4.3 Reverse Charge under GST vis-à-vis Copyright Act	296
20.4.3.1 Musical Work	297
20.4.3.2 Dramatic Works	298
20.4.3.3 Photography	.299
20.4.3.4 Drawings & Paintings	300
20.4.3.5 Work of Architecture	300
20.4.3.6 Actor Services	301
20.4.4 Whether Permanent Transfer of Copyright is covered under RCM?	302
20.4.5 Temporary Transfe	302
20.5 Supplier of Service	303
20.6 Recipient of Service	304
20.7 Valuation	304
20.8 Place of Supply	304
20.9 Conclusion	305
20.10 FAQ’s Answered	305

Chapter 21— Services of an Author

21.1 Introduction	307
21.2 Under Earlier Regime	307
21.3 Entry under GST Regime (Till 30th September, 2019)	308
21.4 Entry under GST Regime (w.e.f. 01st October, 2019)	308
21.5 Analysis of Service	309
21.5.1 What is Copyright?	309
21.5.2 What is Literary Work?	310
21.5.3 Who is an Author?	311
21.5.4 What is Originality in Literary Work?	312
21.5.5 Who is Publisher?	313
21.5.6 Whether temporary and permanent transfer of Copyright covered under RCM?	313
21.5.7 Author providing service in the course of Employment	314
21.5.8 A Freelance Author	315
21.5.9 Option available to Author to pay tax on forward charge	315
21.5.10 Era of Digital Publishing	316
21.6 Valuation	317
21.7 Place of Supply	317
21.8 Conclusion	318
21.9 FAQs Answered	318

Chapter 22— Overseeing Committee Services

22.1 Introduction	322
22.2 Entry under GST Regime (w.e.f. 13th October, 2017)	322
22.3 Analysis of Service	322
22.3.1 Nature of Service	323
22.3.2 What is Sustainable Structuring of Stressed Assets?	323
22.3.3 What is Overseeing Committee?	324
22.3.4 GST Implication	324
22.4 Valuation	325
22.5 Place of Supply	325

Chapter 23— Direct Selling Agent Services

23.1 Introduction	327
23.2 Under Earlier Regime	327
23.3 Entry under GST Regime (w.e.f. 27th July, 2018)	327
23.4 Analysis of Service	328
23.4.1 What is Banking Company?	328
23.4.2 What is Non-Banking Financial Institution?	328
23.4.3 Who are Direct Selling Agents?	329
23.4.4 GST Implication	329
23.5 Valuation	329
23.6 Place of Supply & Type of Tax	330
23.7 FAQs Answered	331

Chapter 24— Business Facilitator Services

24.1 Introduction	333
24.2 Under Earlier Regime	333
24.3 Entry under GST Regime (w.e.f. 01st January, 2019)	334
24.4 Exemptions	334
24.5 Analysis of Service	334
24.5.1 Who can be Business Facilitator?	334
24.5.2 What is the nature of services provided by Business Facilitator?	335
24.5.3 What is Banking Company?	335
24.5.4 Who pays the amount of consideration?	336
24.5.5 GST Implication on Business Facilitators	336
24.5.6 Whether all the services provided by business facilitator covered under reverse charge?	336
24.5.7 What does “Service with respect to accounts in Rural Branch� mean?	337
24.6 Services provided to Insurance Company	337
24.7 Flowchart	338
24.8 Valuation	338
24.9 Place of Supply	338

Chapter 25— Business Correspondent Agent Services

25.1 Introduction	340
25.2 Under Earlier Regime	340
25.3 Entry under GST Regime (w.e.f. 01st January, 2019)	341
25.4 Exemptions	341
25.5 Analysis	341
25.5.1 Who can be a Business Correspondent?	342
25.5.2 Who can be an agent to the Business Correspondent?	342
25.5.3 What is the nature of services provided by agents of Business Correspondent?	343
25.5.4 Who pays the amount of consideration?	343
25.5.5 GST Implication on Business Facilitators	343
25.5.6 Exemption on services provided by Agent to BC	344
25.5.7 Services of Business Correspondent to Bank	344
25.5.8 What does “service with respect to accounts in rural branch� mean?	344
25.6 Flow Chart	345
25.7 Valuation	345
25.8 Place of Supply	345

Chapter 26— Lending of Securities

26.1 Introduction	347
26.2 Entry under GST Regime (w.e.f. 01st October, 2019)	347
26.3 Analysis of Service	348
26.3.1 Nature of Service	348
26.3.2 Process of Securities Lending and Borrowing	349
26.3.3 GST Implication	349
26.3.4 What does ‘securities’ mean?	350
26.4 Supplier of Service	351
26.5 Recipient of Service	351
26.6 Flow Chart	352
26.7 Place of Supply	352

Chapter 27— Reverse Charge on Goods

27.1 Introduction	354
27.2 Under Earlier Regime	354
27.3 Entries under GST	354
27.4 Exemptions under Notification No. 02/2017 – CT (Rate)	356
27.5 Analysis	356
27.5.1 Supply of Lottery	357
27.5.1.1 Legality of Lottery in India	357
27.5.1.2 Taxation of Lottery under Earlier Regime	358
27.5.1.3 Taxation of Lottery under GST Regime	359
27.5.1.4 Valuation of Lotteries	361
27.5.1.5 How the taxation on Lottery works?	362
27.5.1.6 Lotteries by Central Government – Not covered under reverse charge?	363
27.5.2 Sale of used Vehicles or Seized & Confiscated Goods, Old and used Goods, Waste and Scrap	363
27.5.2.1 Seized & Confiscated Goods	363
27.5.2.2 Sale of used Vehicles	365
27.5.2.3 Sale of Old & Used Goods, Waste and Scrap	367
27.5.2.4 Sale made to unregistered person	368
27.5.3 Priority Sector Lending Certificate	368
27.5.4 Sale of Cashew Nuts, Beedi Leaves, Tobacco Leaves & Raw Cotton	369
27.5.4.1 Agriculturist	370
27.5.4.2 Raw Cotton	371
27.5.4.3 Tobacco Leaves	371
27.5.5 Peppermint Oil	372
27.5.6 Sale of Silk Yarn	373
27.5.6.1 Whether Artificial Silk Yarn is covered under Reverse Charge?	375
27.6 Valuation	375
27.7 Time of Supply	376
27.7.1 Date of receipt of goods	376
27.8 Place of Supply	377
27.8.1 Sale of Cashew Nuts, Beedi Leaves, Tobacco Leaves, Silk Yarn or Raw Cotton	378
27.8.2 Sale of Lottery Tickets	379
27.9 Advance Rulings	380

Chapter 28— Procurement from Unregistered Suppliers

28.1 Introduction	381
28.2 Under Earlier Regime	381
28.3 A Brief Background under GST	382
28.3.1 01st July 2017 to 31st January, 2019	382
28.3.2 Form 01st February 2019 and onwards	388
28.4 Entry under Notification No. 07/2019 – CT (Rate) (w.e.f. 01st April, 2019)	389
28.5 Analysis of Supplies	390
28.5.1 Reverse Charge on Shortfall of Minimum Value	390
28.5.2 Cement Purchase	394
28.5.3 Capital Goods for Construction Project	395
28.6 Valuation	395
28.7 Place of Supply	395
28.8 FAQs Answered	397
Annexure-1: A Brief on Types of Real Estate Projects	398

Chapter 29— Compulsory Registration – Whom does it Impact?

29.1 Introduction .	401
29.2 Advantages of Registration	401
29.3 Registration Under GST	402
29.4 Compulsory Registration under GST	403
29.5 Compulsory Registration for an Individual	403
29.6 Compulsory Registration for Unregistered Small Business	405
29.7 Registration effect on Supplier suppling RCM supplies	406
29.8 Recipient engaged in making only Exempt Supplies	406
29.9 Supplier engaged in RCM Supplies & FCM Supplies	407

Chapter 30— Input Tax Credit

30.1 A brief History on ITC	408
30.2 What is ITC?	408
30.3 Eligibility for claiming ITC	409
30.4 General conditions for claiming ITC	409
30.5 Analysis of Condition of Claiming ITC under RCM	410
30.6 Blocked ITC	413
30.6.1 What are Blocked Credits under GST?	413
30.6.2 Relevant Blocked Credits from Point of View of RCM	415
30.6.2.1 Leasing, Renting or Hiring of Motor Vehicle	415
30.6.2.2 Personal Effects	415
30.6.3 Relevant Blocked Credits from Point of View of RCM Supplier
30.6.3.1 Motor Vehicles for GTA	416
30.6.3.2 Motor Vehicles for Transport of Passengers	418
30.7 Rules 42 & 43 Reversal – Relevant for Supplier	419
30.8 Revenue Neutrality	420
30.9 Some Issues under ITC	421
30.9.1 Tax paid under RCM by mistake – Whether ITC allowed on the same?	421
30.9.2 ITC after the expiry of time limit prescribed under Section 16(4)	421

Chapter 31— Procedural Aspects of Reverse Charge

31.1 Documentation for Recipient	423
31.1.1 Self-Invoice	423
31.1.2 Payment Voucher	424
31.1.3 Contravention	425
31.2 Documentation for Supplier	425
31.2.1 Invoicing	425
31.2.2 Special Invoicing Mechanism for GTA	426
31.3 Payment of Taxes	426
31.3.1 Under Earlier Regime	427
31.3.2 Under GST Regime	427
31.4 Interest of delayed payment of taxes	428
31.5 GST Returns	429
31.5.1 Disclosures for Recipient	429
31.5.2 Disclosures for Supplier (If he is registered)	430