GST on RCM - A Simple View
- · If you
have RCM liability even, then your threshold limit is less than eligible
turnover you must register under gst as per Sec 24 of CGST Act 2017.
- · RCM
covered under CGST Act 2017 – under sec 9(3), 9(4) & 9(5)
- · In case
of a project developer or construction of apartment by the developer, 80% of
inputs and input services [other than capital goods, TDR/JDA, FSI, long-term
lease (premium) shall be purchased from registered persons. On shortfall of
purchases from 80% tax shall be paid by the builder @18% on RCM basis. However,
Tax on cement purchased from unregistered person shall be paid @28% under RCM,
and on capital goods under RCM at applicable rates in terms of Section 9(4) the
CGST Act,2017
- · Renting
of motor vehicle There are only two rates applicable on the service of renting
of vehicles, 5% with limited ITC and 12% with full ITC.
· Goods
–
ü cashew
nuts not shelled or peeled,
ü Beedi
wrapper leaves,
ü tobacco
leaves,
ü Mentha
piperita,
ü silk
yarn,
ü raw
cotton,
ü supply
of lottery,
ü seized
vehicle sold by government,
· Services
–
ü GTA,
ü Individual
advocate,
ü Arbitral
Tribunal,
ü sponsorship
service,
ü services
supplied by government,
ü renting
of residential or commercial to registered person,
ü Transfer
of Development right or floor space index,
ü long
term lease of land (over 30 years),
ü Payment
to Company director,
ü Insurance
agent service,
ü recovery
agent service,
ü copy
right service to composer, photographer or artist,
ü members
of overseeing committee constituted by RBI,
ü Direct
selling agents for banking or NBFC sector,
ü Business
facilitator,
ü An
agent of business correspondent,
ü renting
of motor vehicle designed to carry passengers to body corporate,
ü service
of lending securities,
ü services
from Non-taxable territory to taxable territory,
ü Security
services,
ü Unregistered
supply through Electronic Commerce Operators
