List of Services Under RCM in GST 2022: What You Need to Know

Updated on November 19, 2024 04:53:35 PM

The main objective of the reverse charge mechanism is to shift the GST burden to the recipient of the goods. Due to this scope of the tax levied is widened. There is the List of Services Under RCM in GST 2022 which are liable. They are services like Sponsorship services, insurance agents, Arbitral tribunal services, legal services, recovery agent services, etc. Under the reverse charge payment of tax is done through cash not adjusted toward output tax on goods or services.

Reverse charge mechanism can be difficult to claim due to various rules of the reversal. Professional Utilities can help in all GST Related matters.

Reverse charge mechanism is defined as responsibility to pay tax shift to recipient of the goods or services from supplier of the goods or services. There are various services covered under list of services under rcm in gst 2022.

RCM notification under gst includes goods and services in the List of services under rcm in gst 2022 as mention below -

List of the services under RCM in GST-2022

List of the goods under RCM in GST-2022

There are many goods that come under RCM in GST 2023 as mentioned below -

• Purchase of Bidi wrapper leaves
• Raw cotton purchase
• Not peeled or shelled cashew nut
• Cement purchase
• Tobacco leaves purchase
• Goods Transport Agency service
• Lottery ticket purchase
• Silk yarn purchase
• Priority sector lending certificate purchase

Under reverse basis in case of the supplies of the goods when tax is liable to be paid or is paid.

In the supply of the goods with regards to tax which are liable to be paid or is paid

• Date of the goods is received.
• The date on which the bank account is debited with Payment or the date of payment on which the recipient’s book of account is entered, whichever is earlier.
• the day that comes after 30 days have passed since the supplier sent the invoice or any other document, or a similar document thereof.

The time of the supply will be earliest of the above mention dates

In the supply of the services with regards to tax which are liable to be paid or is paid

• The date on which the bank account is debited with payment or in the book of accounts date of payment is entered whichever is earlier.
• the day that comes after 60 days have passed since the supplier's date of invoice or other comparable document issuance.

The time of the supply will be earliest of the above mention dates

Compliances in respect of supplies under the Reverse Charge Mechanism

• Under section 31, all the invoices related to supply are in reverse charge.
• Refund vouchers and receipt vouchers also need to be mentioned.
• All records related to the reverse charges in payment of tax are required to be maintained.
• Under reverse charges, any amount payable will be paid through an electronic cash ledger.
• GST is also levied on advance paid for reverse charges basis.
• For each supply attracting a reverse charge, invoice-level details must be included separately in column 4B of the GSTR-1.

Under reverse charge mechanism recipient of the goods and services has liability to pay the taxes rather supplier if goods and services under notified categories. Recipient for the payment made need to issue payment voucher when payment is made to the supplier. Recipient can not avail the input tax credit. Under the reverse charge if payment is not issued within the 180 days then registered person cannot avail input tax credit. there