Reverse Charge Mechanism

1.Section 2(38)- Reverse Charge means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both.

2. Specified Goods under Reverse Charge- Notification No.4/2017-Central Tax

Sr. No	Description of supply of goods	Supplier of Goods	Recipient of Goods
1	Cashew nuts, not shelled or peeled	Agriculturist	Any registered person
2	Bidi wrapper leaves (Tendu)	Agriculturist	Any registered person
3	Tobacco leaves	Agriculturist	Any registered person
4	Silk Yarn	Any person who manufactures silk yarn from raw silk or silk worm cocoons for supply of silk yarn.	Any registered person
4A	Raw Cotton	Agriculturist	Any registered person
5	Supply of lottery	State Government, Union Territory or any local authority	Lottery distributor or selling agent
6	Used Vehicles, seized and confiscated goods, old and used goods, waste and scrap	Central government, State government, Union territory or a local authority	Any registered person

3. Specified Services under Reverse Charge- Notification No. 13/2017- Central Tax

Sr. No	Description of supply of goods	Supplier of Goods	Recipient of Goods
1	Supply of Services by a Goods Transport Agency (GTA) [Who has not paid central tax at the rate of 6%] in respect of transportation	Goods Transport Agency (GTA)	(A) Any factory registered under or governed by the factories act, 1948(B) Any Society registered under the Socities Registration Act, 1860.(C) Any Co-operative society established by or under any laws.(D) Any person registeredunder Cnetral Goods and services Tax Act.(E) Any Body- Corporate established by or under any law.(F) Any partnership firm whether registered or not under and law.(G) Any casual taxable person located in the taxable territory
2	Services provided by an individual advocate including a senior advocate or firm of advocates by way of legal services, directly or indirectly	An individual advocate including a senior advocate or firm of advocates	Any Business Entity located in the taxable territory
3	Services supplied by an Arbitral Tribunal	An Arbitral Tribunal	Any Business Entity located in the taxable territory
4	Services provided by way of sponsorship	Any Person	Any body corporate or partnership firm located in the taxable territory
4A	Raw Cotton	Agriculturist	Any registered person
5	Services supplied by the Central Government, State Government, union territory or local authority to a business entity excluding-(i)Renting of immovable property, and(ii)Services by the department of Posts by way of speed post, express parcel post, life insurance, and agency services(iii)Services in relation to an aircraft or a Vessel, inside or outside the precincts of a port or an airport.(iv)Transport of goods or passengers	Central Government, State Government, union territory or local authority	Any Business Entity located in the taxable territory
5A	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	Central Government, State Government, union territory or local authority	Any person registered under the central Goods and services Tax Act, 2017
6	Services supplied by a Director of a company or a body corporate to the said company or the body corporate	Director	The company or body corporate located in the taxable territory
7	Services supplied by an Insurance Agent to any person carrying on insurance business	An Insurance Agent	Any person carrying on insurance business, located in the taxable territory
8	Services supplied by a Recovery Agent to a banking co or a financial institution or a non-banking finance company	A Recovery Agent	a banking co or a financial institution or a non-banking finance company
9	Services supplied by an author, music composer, photographer, artist or the like by way of transfer or permitting the use or enjoyment of a copyright	Author, music composer, photographer, artist	Publisher, music company, producer or the like, located in the taxable territory
10	Services supplied by the members of overseeing committee to Reserve Bank of India	members of overseeing committee	Reserve Bank of India