Page Contents
The supply of goods subject to reverse charge mechanism (RCM) where the recipient is needed to pay GST, have been notified vide Central Board of Indirect Taxes & Customs Notification No. 4/2017 dated 28 June 2017 U/s 9(3) of the Central Goods and Services Tax Act, 2017.
The list of notified goods on which GST is needed to be paid under reverse charge is given below along with date from which reverse charge provisions are applicable on such goods. These goods are also notified for reverse charge under other Goods and services Tax Acts(s).
Sr No. | Goods Description | Goods Supplier | Recipient of Goods |
1 | Cashew nuts, not shelled or peeled (RCM applicable from 01.07.2017). | Agriculturist | Any registered person |
2 | Bidi wrapper leaves (tendu) (RCM applicable from 01.07.2017). | Agriculturist | Any registered person |
3 | Tobacco Leaves (RCM applicable from 01.07.2017). | Agriculturist | Any registered person |
4 | Raw cotton (RCM applicable from 15.11.2017 vide Central Board of Indirect Taxes & Customs N.N. 43/2017-CT(R) dated 14.11.2017) | Agriculturist | Any registered person |
5 | Silk yarn (RCM applicable from 01.07.2017). | Agriculturist | Any person who manufactures silk yarn from raw silk / silk worm cocoons for supply of silk yarn |
6 | Supply of lottery (RCM applicable from 01.07.2017). | State Government, Union Territory or any local authority | Lottery distributor or selling agent |
7 | Used vehicles , seized and confiscated goods, old and used goods , waste and scrap. (RCM applicable from 13.10.2017 vide Central Board of Indirect Taxes & Customs N.N. 36/2017-CT(R) dated 13.10.2017) | Central / State Government, Union Territory or a local authority | Any registered person |
8 | Priority Sector Lending Certificate (RCM applicable from 28.05.2018 vide Central Board of Indirect Taxes & Customs N.N. 11/2018-CT(R) dated 28.05.2018) | Any registered person | Any registered person |
9 | Following essential oils other than those of citrus fruit namely: a) of peppermint (menthapiperita) b) Of other mints: Spearmint oil, watermint oil, Horsemint oil, Bergament oil. (RCM applicable w.e.f 01.10.2021 vide Central Board of Indirect Taxes & Customs N.N 10/2021-CT(R) dated 30.09.2021. | Any unregistered person | Any registered person |
Out of eight goods wherein RCM is applicable on five goods , if purchased by GST Registered person from an agriculturist. So it is essential to understand the meaning of ‘Agriculturist’.
It should be noted that the term “agricultural” does not have a meaning under the GST law, but the term “agriculturist” does. Generally, the term “agricultural” is understood very broadly in commercial jargon to also cover post-harvesting activities. Horticulture, sericulture, and floriculture should all be included in further agriculture. It does not, But cover animal rearing.
According to the as per Schedule III of the Central Goods and Services Tax Act, 2017. The ‘Lottery tickets’ is an actionable claim & is classified as ‘Goods’, under Goods and Services tax. But an actionable claim other than betting, lottery & gambling has been kept outside scope of supply.
So lottery tickets Sale would be considered to be the supply of taxable goods and will attract Goods and Services Tax.
Payment of GST under reverse charge:
What is the PSLC?
Priority Sector lending certificate are tradable instruments issued as certificates against priority sector lending by Nationalized or Private sector banks. The certificates help banks to meet their lending goals specified for the priority sector. Buyers of Priority Sector Lending Certificate are generally those Nationalized or Private sector banks who are not able to meet there needed target of lending priority sector. So, Nationalized or Private sector banks moving ahead of their targets issues Priority Sector Lending Certificate to non-achievers to balance the flow of lending and credit.
PSLC (Priority Sector Lending Certificate) are issued only between Nationalized or Private sector banks and the risk on account of credit made by over-performing Nationalized or Private sector banks, does not transfer with the issue of certificates to other Nationalized or Private sector banks.
Priority Sector Lending Certificate issued by Nationalized or Private sector banks does not transfer any risk, loan assets, interest or any right, hence, Priority Sector Lending Certificate does not fall under the definition of securities. They have an intrinsic value of their own and are to be taxed at general rates like other taxable goods under Goods and services Tax.
The option to utilize amount in cash ledger of one Goods & Services Tax Identification No by another Goods & Services Tax Identification No (entities having same Permanent Account No) by way of transfer through form PMT-09 has been made effective in Goods and Services Tax portal.
Exploring Corporate Bonds in India - A Comprehensive Guide Corporate bonds in India represent a compelling investment option, offering a… Read More
Central Board of Direct Taxes Mandates E-Filing of Appendix-II Forms under Income Tax Rules, 1962 The Central Board of Direct… Read More
Payment System or mechanism under GST Regime General Rules for Payments Regular taxpayers under GST must compute tax monthly,… Read More
Rule 86B under the GST Regime Rule 86B is a provision introduced under the Goods and Services Tax (GST) regime… Read More
Big Relief to Taxpayers- welcome change for GST taxpayers The recent update by the Goods and Services Tax Network (GSTN)… Read More
Central Board of Indirect Taxes & Customs Circulars Issued on 26th June 2024 Following the recommendations from the 53rd GST… Read More