List of Services where RCM is applicable incorporating amendments

1.) Goods Transport Agency (GTA)

Applicability

Where Goods Transportation Services are provided by a goods transport agency (GTA) who has not paid central tax at the rate of 12% [6% CGST + 6% SGST or 12% IGST as the case may be], in respect of transportation of goods by road.

Conditions for applicability of this Provision on recipient:

This clause is applicable if Recipient of Service is :

(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) 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.

2.) Legal Services

Applicability

Where Legal Services are provided by an individual advocate including a senior advocate or firm of advocates by way of legal services, directly or indirectly.

Conditions for applicability of this Provision on recipient:

Any business entity located in the taxable territory availing Legal services
would be covered by this clause.

3.) Services of arbitral tribunal

Applicability

Applicable on all services supplied by an arbitral tribunal to a business entity.

Conditions for applicability of this Provision on recipient:

Any business entity located in the taxable territory availing services of Arbitral Tribunal would be covered by this clause.

4.) Sponsorship Services

Applicability

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

Conditions for applicability of this Provision on recipient:

Any body corporate or partnership firm located in the taxable territory availing Sponsorship Services would be covered by this clause.

5.) Where Services are Supplied by Government [Excluding Services of renting of immovable property]

Applicability

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

(1) renting of immovable property, and

(2) services specified below

(i) 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;

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

(iii) transport of goods or passengers.

Conditions for applicability of this Provision on recipient:

Any business entity located in the taxable territory.

6.) Where Services are Supplied by Government [Renting of immovable property]

Applicability

Services supplied by the Central Government, State Government, Union territory or local authority by way of renting of immovable property to a person registered under the Central Goods and Services Tax Act, 2017 (12 of 2017)

Conditions for applicability of this Provision on recipient:

Any person registered under the Central Goods and Services Tax Act, 2017.

7.) Services provided by Director of a Body Corporate

Applicability

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

Conditions for applicability of this Provision on recipient:

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

8.) Services provided by insurance agent

Applicability

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

Conditions for applicability of this Provision on recipient:

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

9.) Services provided by recovery agent

Applicability

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

Conditions for applicability of this Provision on recipient:

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

10.) Services of Author or music composer, photographer, artist, or the like

Applicability

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.

Conditions for applicability of this Provision on recipient:

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

11.) Services of Members of Over-seeing Committee constituted by the Reserve Bank of India

Applicability

Supply of services by the members of Overseeing Committee to Reserve Bank of India

Conditions for applicability of this Provision on recipient:

Reserve Bank of India

12.) Services of Individual Direct Selling Agents (DSAs) other than a body corporate, partnership or limited liability partnership firm.

Applicability

Services supplied by individual Direct Selling Agents (DSAs) other than a body corporate, partnership or limited liability partnership firm to bank or non-banking financial company (NBFCs).

Conditions for applicability of this Provision on recipient:

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

13.) Business facilitator (BF)

Applicability

Services provided by business facilitator (BF) to a banking company

Conditions for applicability of this Provision on recipient:

A banking company, located in the taxable territory

14.) An agent of business correspondent (BC)

Applicability

Services provided by an agent of business correspondent (BC) to business correspondent (BC)

Conditions for applicability of this Provision on recipient:

A business correspondent, located in the taxable territory

15.) Security services

Applicability

Security services (services provided by way of supply of security personnel) provided to a registered person

Conditions for applicability of this Provision on recipient:

A registered person, located in the taxable territory availing Security Services.

Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information. In no event shall I shall be liable for any direct, indirect, special or incidental damage resulting from, arising out of or in connection with the use of the information.