Rcm services under sec.5(3)

Hey Rajkumar! Here's what you need regarding RCM services under Section 5(3) of the IGST Act and your specific query:

1. List of services under Section 5(3) of IGST Act (RCM on services by unregistered suppliers):

Section 5(3) says the recipient is liable to pay GST (RCM) when they receive notified services from unregistered suppliers.

Common notified services under Section 5(3):

• Services by way of transport of goods by road (freight) by an unregistered person.

• Services of renting of motor vehicles designed to carry passengers, if the supplier is unregistered and the recipient is a registered person.

• Services provided by Directors to a company.

• Services by advocate or firm of advocates to business entities.

• Services by Government or local authority to business entities.

• Services by arbitral tribunal to business entities.

• Services by individual advocate or firm of advocates to business entities.

• Services of sponsorship to a body corporate.

• Services provided by authorised service stations to car/bike owners.

(Note: The exact notified list can be updated by the government from time to time.)

2. Regarding your case:

• Rental car used in Karnataka (supplier unregistered)

• Recipient is a registered body corporate in Maharashtra

Since the service provider (car rental) is unregistered and the recipient is a registered body corporate, RCM is applicable as per section 5(3).

3. Is RCM payable as CGST+SGST or IGST?

The rule is:

• If place of supply and recipient are in different states, IGST is applicable under RCM.

• If both are in the same state, then CGST + SGST under RCM.

Here, the supplier is in Karnataka, and the recipient is in Maharashtra — interstate supply.

So, RCM payable is IGST at applicable rate (e.g., 12%).

Summary: