On which services reverse charge is applicable under GST?
Table of Contents
On which services reverse charge is applicable under GST?
SERVICES UNDER REVERSE CHARGE AS APPROVED BY GST COUNCIL
| Sl. No. | Provider of service | Percentage of service tax payable by service provider |
|---|---|---|
| 1 | Any person who is located in a nontaxable territory | Nil |
| 2 | Goods Transport Agency (GTA) | Nil |
| 3 | An individual advocate or firm of advocates | Nil |
| 4 | An arbitral tribunal | Nil |
Is reverse charge applicable on purchase from registered dealer?
B. Section 9(4) of the CGST Act states that if a vendor is not registered under GST supplies goods to a person registered under GST, then reverse charge would apply. This means that the GST will have to be paid directly by the receiver instead of the supplier.
Which tax excludes tax payable on reverse charge basis?
(82) “output tax” in relation to a taxable person, means the tax chargeable under this Act on taxable supply of goods or services or both made by him or by his agent but excludes tax payable by him on reverse charge basis; It is evident from the above, it does not include tax payable by him on reverse charge basis.
How is reverse charge calculated in GST?
Example – A trader who is registered in GST takes services of Goods Transport Agency (GTA) for Rs. 10,000. This service is listed under the reverse charge list therefore trader has to pay tax @ 18\% on Rs. 10,000 on RCM.
Is reverse charge applicable on import of services under GST?
The importer of services will have to pay tax on reverse charge basis. However, in respect of import of online information and database access or retrieval services (OIDAR) by unregistered, non-taxable recipients, the supplier located outside India shall be responsible for payment of taxes (IGST).
When can credit for tax paid under reverse charge be taken?
(3) Any amount payable under reverse charge shall be paid by debiting the electronic cash ledger. In other words, reverse charge liability cannot be discharged by using input tax credit. However, after discharging reverse charge liability, credit of the same can be taken by the recipient, if he is otherwise eligible.