CHARGE OF GST
Section 9(1) to 9(5) → Intrastate
Section 5(1) to 5(5) → Interstate
• Both has same provisions except for the maximum rate
Forward Charge
Section 9(1) → Normal levy
• CGST shall be levied on intra state supply of G/S/B except Alcoholic liquor for
human consumption on value determined U/s 15 @ maximum rate of 20% CGST as
may be notified
• In case of IGST, maximum rate is 40%
• It is collected and paid by the taxable person
Section 9(2)
• GST shall be levied w.e.f the date notified by Govt. on recommendation of council for
the following
o Crude Oil
o Diesel
o Petrol
o Natural Gas
o Aviation Turbine Fuel
Section 9(3) → RCM on notified goods
RCM on notified services
1. GTA
FBSCOOP → RCM 5% Registered Person Casual Taxable Person
Normal/Composition TDS deductor Registered Unregistered
→ RCM @ 5% → Exempt person → person →
RCM @ 5% Exempted
F → Factory
B → Body Corporate
S → Society
COO → Co-operative society
P → Partnership firm including AOP
Note
Department of CG/SG/UT/LA/GA → Registered as TDS deductor
2. Sponsorship services To Body corporate/ partnership firm in taxable territory
3. Any person (Trf. Of development right/floor space) To Promoter
Any person (Long term lease of land – 30 years/more)
4. Director rendering services to Company/ body corporate in a taxable territory
Directors
Independent Directors Whole Time Directors
Not an employee of the company and hence
In the nature of ER and Renders some other
RCM applicable E.g., Sitting fees
EE –-> Covered as per services like
Schedule III and not a professional services,
supply, hence GST not then RCM applicable
applicable
5. Insurance Agent To Insurance company in a taxable territory
6. Recovery Agent to Bank/FI/NBFC in a taxable territory
7. Music Composer to Music company in a taxable territory
8. Photographer/ artist to Producer in a taxable territory
9. Author to Publisher
Author includes
o Unregistered person
o Registered person not exercising the option of FCM
If exercising the option of FCM, then the same shall not be withdrawn within 1 year from the
date of exercising such option
10. Members of overseeing committee to RBI
11. Direct selling agent to Bank/ NBFC in a taxable territory
12. Business facilitator → The person who gives knowledge about banking services
Business Correspondent → Gives knowledge and does transactions
Banking company services to Business facilitator (BF) services to Agent of BF
RCM FCM
Banking company services to Business Correspondent (BC) services to Agent of BC
FCM RCM
13. Security services
Any person other than Body corporate to Registered person in taxable territory
But RCM is not applicable in the following cases:
o Registered person is a TDS deductor
o In case of composition dealer
14. Renting of Motor Vehicle
Any person other than Body corporate to Body corporate in a taxable territory
Condition
• The person other than Body corporate should not issue invoice @ 12%
Circular
• Where BC hires MV for a period of time during which MV is at its disposal → RCM
• Where BC avails passenger transportation services for a specific journey and does not
take it on rent → No RCM
15. Services of lending of securities to Borrower (under security lending scheme
of SEBI)
Circular
• Transaction in securities including disposal of securities → No supply, hence no GST
• Lending in securities → SOS → RCM – Borrower has to pay
• Nature of supply – Always interstate supply & IGST is payable
Section 9(4)
Unregistered person Specified supplies Specified Person (RP)
Promoter has to procure Inputs/ Input services for at least 80% from RP, In case of less than
80%, the for the difference pay tax under RCM
Section 9(5)
Notified category of services + Intra state supply → Tax payable by ECO + All provisions
applicable to such ECO as if he is the supplier liable for paying tax
Notified category of services
1. Transportation of passengers by radio taxi, motor/ maxi cab, motor cycle, omnibus or
any other motor vehicle
2. Accommodation services in hotel inns etc., for residential, lodging purpose
3. House keeping services like plumbing, carpenting etc.,
4. Restaurant services
Exception
Services by restaurant in specified premises (Hotel accommodation services having tariff
> Rs. 7,500 per unit per day)
Circulars
1. ECO is required to collect GST; it is not required to collect TCS. But on other notified
services, ECO will collect TCS
2. ECO is not required to take separate registration to pay tax on restaurant services
3. ATO of restaurant includes value of supplies made through ECO
4. ECO need not revise ITC on account of restaurant services on which it pays GST &
also ECO shall pay GST in cash
5. If restaurant services & other services/ goods are sold by restaurant to customers
under same order → Advisable ECO raise separate bill for restaurant services. On
another G/S supplier to raise invoice and ECO to collect TCS
