Under Goods and Service Tax (“GST”), generally, a supplier of goods and services is liable to pay GST for the supplies, i.e., at the time of supply of goods or service supplier charges GST over sales consideration and collect the same from recipient and by due date deposit such GST amount to the account of government
On the contrary, in the case of Reverse Charge Mechanism (“RCM”) under GST, the recipient himself is liable to pay the tax for goods and services received by him instead of the supplier. Therefore, the recipient is liable for all compliance under GST.
Here we are providing a close look into the RCM (Reverse Charge Mechanism) to make it easier for you to understand. Scroll down and have a look.
1. When does Reverse Charge under GST apply?
Power to levy GST on RCM basis is given under Section 9(3), 9(4) and 9(5) of Central Goods and Service Tax Act, 2017 which specifies various conditions under which GST shall be payable under RCM. Those are as follows-
1.1 Reverse charge on supply of specified goods and services
1.2 Reverse charge on supply by an unregistered person to a registered person.
1.3 Reverse charge on supplies through e-commerce operator.
1.1 Reverse charge under GST on Supply of specified goods and services (Section 9(3) of CGST Act, 2017)
Section 9(3) of CGST Act, 2017 authorises the government to specify certain category of goods and services, in consultation with GST Council, where GST shall be payable by recipient under RCM.
CBEC (Central Board of Excise & Customs) has specified the following category of goods and services under section 9(3) of CGST Act, 2017 where GST is payable under RCM. That are-
1.1.1 List of Goods on which GST would be paid under reverse charge under GST
- Cashew nuts, not shelled or peeled
- Tobacco leaves
- Bidi wrapper leaves (tendu)
- Raw cotton
- Silk yarn
- Supply of lottery
- Priority Sector Lending Certificate
- Used vehicles, old and used goods, seized and confiscated goods, waste and scrap
1.1.2 List of services on which GST would be paid under reverse charge under GST
Following services are specified under RCM vide notification No. 13/2017 dated 28th June, 2017:
| Nature of Service |
Supplier of Service |
Recipient of Service (Liable to pay GST under RCM) |
| Supply of Services by a goods transport agency (GTA) in respect of transportation of goods by road |
Goods Transport Agency (GTA) |
Specified persons |
| Services supplied by an individual advocate including a senior advocate |
An individual advocate including a senior advocate or firm of advocates |
Any business entity located in the taxable territory. |
| Services supplied by an arbitral tribunal to a business entity. |
An arbitral tribunal. |
Any business entity located in the taxable territory. |
| Services provided by way of sponsorship to any body corporate or partnership firm |
Any person |
Any body corporate or partnership firm located in the taxable territory. |
| Services supplied by the Central Government, State Government, Union territory or local authority to a business entity excluding certain services |
Central Government, State Government, Union territory or local authority |
Any business entity located in the taxable territory. |
| 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 GST law |
Central Government, State Government, Union territory or local authority |
Any person registered under the GST law |
| Services supplied by any person by way of transfer of development rights or Floor Space Index (FSI) (including additional FSI) for construction of a project by a promoter. |
Any person |
Promotor |
| Long term lease of land (30 years or more) for consideration in the form of upfront amount (called as premium, salami, cost, price, development charges or by any other name) or periodic rent for construction of a project by a promoter. |
Any Person |
Promoter |
| Services supplied by a director of a company or a body corporate |
A director of a company or a body corporate |
The company or a body corporate located in the taxable territory. |
| 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 |
| Services supplied by a recovery agent to a banking company or a financial institution or a non-banking financial company. |
A recovery agent |
A banking company or a financial institution or a non-banking financial company, located in the taxable territory |
| 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 |
Author or music composer, photographer, artist, or the like |
Publisher, music company, producer or the like, located in the taxable territory. |
| services by an author by way of transfer or permitting the use of a copyright covered under Section 13(1)(a) of the Copyright Act, 1957 relating to original literary works to a publisher. |
Author |
Publisher located in the taxable territory subject to given exception |
| Supply of services by the members of Overseeing Committee to Reserve Bank of India |
Members of Overseeing Committee constituted by the Reserve Bank of India |
Reserve Bank of India |
| 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) |
Individual Direct Selling Agents (DSAs) |
A banking company or a non-banking financial company, located in the taxable territory |
| Services provided by business facilitator (BF) to a banking company |
Business facilitator (BF) |
A banking company, located in the taxable territory |
| Services provided by an agent of business correspondent (BC) to business correspondent (BC). |
An agent of business correspondent (BC) |
A business correspondent, located in the taxable territory. |
| Security services (services provided by way of supply of security personnel) provided to a registered person |
Any person other than a body corporate |
A registered person, located in the taxable territory. |
| Services of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient |
Any person, other than a body corporate who supplies the service to a body corporate and does not issue an invoice charging central tax at the rate of 6 percent to the service recipient |
Any body corporate located in the taxable territory |
| Services of lending of securities under Securities Lending Scheme, 1997 (“Scheme”) of Securities and Exchange Board of India (“SEBI”), as amended. |
Lender |
Borrower |
Note:
- In case suppliers of goods or services, who are only engaged in supplying goods or services, on which tax to be paid by Recipient u/s 9(3), such supplier are exempted from GST registration. Notification No. 5/2017 – Central Tax
1.2 Reverse charge under GST on Supplies made to a Registered Dealer from an Unregistered Dealer (Section 9(4) of CGST Act, 2017)
Unregistered dealers in GST, are not liable to charge GST on goods or services supplied by them. However, to curb GST evasion, section 9(4) has specified that When an unregistered vendor supplies goods or services to a registered dealer then GST on such transaction will be payable by recipient under RCM. That means, instead of the supplier, the receiver needs to pay GST directly to the Government.
Under section 9(4), the government would specify a list of goods and services, where GST under RCM would be paid by the recipient of goods and services.
この場合、登録事業者はリバースチャージ方式（RCM）に基づきGSTを納付するため、自己請求書を発行する必要があります。州間取引の購入については、購入者がIGSTを納付しなければなりません。州内取引の場合、購入者はCGSTおよびSGSTを納付する必要があります。
当局は、2019年3月29日付の通知第07/2019号（中央税（税率））により、2017年CGST法第9条(4)に基づき、受領者がリバースチャージ方式で課税されるべき以下の物品を指定しました：
| Category of Supply of goods and services |
Recipient liable to pay GST under RCM |
Date of applicability |
Reference |
| Supply of such goods and services which constitute the shortfall from the minimum value of goods or services purchased by a promoter for construction of project, in a financial year (or part of the financial year till the date of issuance of completion certificate or first occupation, whichever is earlier) as prescribed in notification No. 11/ 2017- Central Tax (Rate), dated 28th June, 2017 |
Promoter |
1st April, 2019 |
Notification No. 07/2019- Central Tax (Rate) dated 29th March, 2019 |
| Cement falling in chapter heading 2523 in the first schedule to the Customs Tariff Act, 1975 (51 of 1975) |
Promoter |
1st October, 2019 |
Notification No.24/2019- Central Tax (Rate) dated 30th September, 2019 |
| Capital goods falling under any chapter in the first schedule to the Customs Tariff Act, 1975 (51 of 1975) supplied to a promoter for construction of a project on which tax is payable or paid at the rate prescribed for items (i), (ia), (ib), (ic) and (id) against serial number 3 in the Table, in notification No. 11/ 2017- Central Tax (Rate), dated 28th June, 2017. |
Promoter |
1st April, 2019 |
Notification No. 07/2019- Central Tax (Rate) dated 29th March, 2019 |
未登録者による物品およびサービスの供給に対するRCMについては、これまで多くの進展がありました。以下の表を用いて、未登録者による供給に対するRCMの経時的な変更点を確認します。
| Period |
Applicability of GST under RCM u/s 9(4) of CGST Act, 2017 |
Reference |
| 1st July, 2017 to 12th October, 2017 |
GST under RCM was applicable on supply of goods or services received from unregistered dealers u/s 9(4) of CGST Act, 2017 provided aggregate value of supplies received from all or any of unregistered person is INR 5000 or more in a day |
Notification No. 8/2017-Central Tax (Rate) dated 28th June, 2017 |
| 13th October, 2017 to 31st March, 2018 |
All supplies received from unregistered dealers were exempted from Section 9(4) of CGST Act, 2017 irrespective of amount. |
Notification No. 38/2017 – Central Tax (Rate) dated 13th October, 2017 (amending Notification No. 8/2017) |
| 31st March, 2018 to 30th June, 2018 |
Above mentioned exemption extended |
Notification No. 10/2018 – Central Tax (Rate) dated 23rd March, 2018 |
| 1st July, 2018 to 30th September, 2018 |
Above mentioned exemption extended |
Notification No. 12/2018 – Central Tax (Rate) dated 29th June, 2018 |
| 1st October, 2018 to 30th September, 2019 |
Above mentioned exemption extended |
Notification No. 22/2018 – Central Tax (Rate) dated 6th August, 2018 |
Note: Original N/No. 8/2017-Central Tax (Rate) dated 28th June, 2017 rescinded by Notification No. 01/2019-Central Tax (Rate) dated 29th Jan, 2019 with effect from 1st Feb, 2019. Therefore, all exemptions stood withdrawn with effect from 1st Feb, 2019.
1.3 電子商取引事業者を通じた供給に対するリバースチャージ（第9条(5)）
多くのサービス提供者が、広範な顧客基盤を構築できる電子プラットフォームを通じてサービスを提供しています。しかし、事業者の規模やその数の多さを考慮すると、すべてを追跡することは困難な場合があります。コンプライアンスを容易にするため、政府は電子商取引事業者にGSTコンプライアンスの義務を課しました。
CGST法第9条(5)は、政府に対し、電子商取引事業者を通じて行われる州内供給のうち、電子商取引事業者がGSTの納付義務を負う特定のサービスカテゴリーを指定する権限を与えています。これに基づき、ある者が電子商取引事業者を通じてサービスを提供する場合、当該サービスに対するGSTは、RCMに基づき電子商取引事業者が納付するものとします。
電子商取引事業者が課税地域内に拠点を持たない場合、当該電子商取引事業者を代表する者がGSTの納付義務を負うものとします。
例えば、UrbanClapは電気技師、配管工、美容師などのサービスを提供しています。この場合、電子商取引プラットフォームである「UrbanClap」がGSTの納付義務を負い、登録されたサービス提供者からではなく、サービスを受ける消費者から徴収されます。
電子商取引企業が課税地域内に物理的な拠点を持たない場合、その電子商取引事業者を代表する者を置く必要があり、その個人が税額の納付義務を負うことになります。
2. GSTにおけるRCM納付期限
供給時期は、物品またはサービスが供給されたとみなされる時点を決定し、それに応じて納税義務が発生する時点を定めます。これは、供給者が課税額（IGST/CGST/SGST）を計算し、請求書に記載された納税期限を特定するのに役立ちます。供給時期は物品とサービスで異なります。以下をご覧ください。
2.1 物品供給におけるGSTのRCM納付期限
受領者が受領した物品に対してRCMに基づきGSTを納付する義務がある場合、供給時期は以下の日付のうち最も早いものとします。
- 物品の受領日、または
- 受領者の会計帳簿に記載された支払日、もしくは銀行口座から支払いが引き落とされた日のいずれか早い方、または
- 供給者が発行した請求書の日付から30日後
上記の方法で日付を特定できない場合、供給時期は受領者の会計帳簿への記入日となり、それに応じてGSTの納付義務が履行されます。
例：
- 物品の受領日：2020年5月15日
- 当該供給の支払日：2020年6月20日
- 請求書記載日：2020年5月12日
- 受領者の帳簿への記入日：2020年5月18日
この場合、物品の供給時期は2020年5月15日となります。
2.2 サービス供給におけるGSTのRCM納付期限
物品の供給時期と同様に、サービスの供給時期は以下の日付のうち最も早い日となります。
- 受領者の帳簿に記載された支払日、または銀行口座から支払いが引き落とされた日のいずれか早い方、あるいは
上記の方法で供給時期を決定できない場合は、受領者の帳簿への記入日を供給が行われた時期とみなさなければなりません。
例：
- 受領者の帳簿上の支払日：2020年7月15日
- 請求書記載日から60日経過した翌日：[請求書の日付が2020年5月15日の場合、60日後は2020年7月14日となります]
- 受領者の帳簿への記入日：2020年7月18日
したがって、供給時期は2020年7月14日となります。
3. リバースチャージ方式（RCM）で支払った税金の仕入税額控除（ITC）
2017年CGST法第16条(2)項に基づき、仕入税額控除を請求するための条件の一つとして、「登録事業者が、本法に基づき登録された供給者が発行した税務請求書またはデビットノート、あるいは規定されたその他の納税書類を所持していること」が挙げられます。
したがって、RCMに基づき支払ったGSTの仕入税額控除（ITC）を請求する場合、供給者は税務請求書を発行しないため、供給者の請求書だけでは不十分です。ただし、受領者がRCMに基づきGSTを支払う際に使用する納付書（チャラン）は、納税書類として認められます。
そのため、受領者は2017年CGST法第16条(2)項に規定されるその他の条件を満たすことを前提として、RCMに基づきGSTを支払った月にITCを請求する権利を有します。
4. RCMに関するよくある質問（FAQ）
4.1 受領者が登録業者ではないものの、RCMに基づき納税する必要がある場合はどうなりますか？
リバースチャージ方式に基づき納税義務があるすべての納税者は、GSTへの登録が必要です。その際、200万ルピーまたは400万ルピーの登録基準額は適用されません。
4.2 私はリバースチャージの対象となる供給品の製造業者です。GSTに登録すべきでしょうか？
いいえ、受領者がGSTの納税義務を負う供給品の製造業者は、GSTへの登録義務はありません。ただし、他のカテゴリーで登録義務が生じる場合は、その目的のためにGST登録を行う必要があります。
4.3 リバースチャージ方式においてITCは認められますか？
リバースチャージ方式で支払った税金の総額は、供給された物品またはサービスが事業に使用される、あるいは使用される予定である場合に限り、仕入税額控除（ITC）の対象となります。したがって、この場合、受領者はITCを利用できます。
4.4 少額の購入であってもRCMに基づき納税する必要がありますか？
未登録の販売者からの州内購入については、1日あたりの供給総額が5,000ルピーを超えない限り、リバースチャージ方式でGSTを支払う義務はありません。
4.5 What happens if an Input Service Distributor receives such goods or services which are liable to Reverse Charge Mechanism?
Well, an Input Service Distributor can't purchase any good or service which is liable to RCM. In case, the ISD wishes to obtain such supplies and take the RCM paid as credit; the person needs to register as a Normal Taxpayer.That’s all! Now you know all about the Reverse Charge Mechanism. If you have further queries related to RCM, write it in the comment box below. Stay connected for latest updates on GST.
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