Satish Agarwal : + 9811081957 satishagarwal307@yahoo.
com
Reverse Charge Mechanism (RCM) under the GST in India
(A)RCM for the Services
S.No Description of Services Person Liable to Pay the RCM Rate of RCM %
Taxable service provided by a person as Recipient is a person as located in Taxable
1 100%
located in Non-Taxable Territory Territory
Recipient is a factory, Society, registered
2 Goods Transport Agency (GTA) Services person, company, partnership firm, casual 100%
taxable person
3 Legal Consultancy Service Recipient is a business entity 100%
4 Arbitral Tribunal Service Recipient is a business entity 100%
Recipient is a Body Corporate or
5 Sponsorship Service 100%
Partnership firm/LLP
6 Director Service Recipient is a Body Corporate 100%
Recipient is engaged in insurance
7 Insurance Agent Service 100%
business
Recipient is a banking company NBFC or
8 Recovery Agent Service 100%
Financial institution
Transport of goods in vessel from
9 Recipient is an importer 100%
Outside India
Recipient is a Publisher, Music company
10 Copyright service 100%
or producer
Radio Taxi Transport Service (through
11 Recipient is an E-Commerce operator 100%
E-Commerce Operator
Accommodation Service in hotel
12 Recipient is an E-Commerce operator 100%
(through E-Commerce operator)
Housekeeping Service (Through E-
13 Recipient is an E-Commerce operator 100%
Commerce operator)
All Services provided by Govt. or Local
Authority (Except certain Services like
14 Recipient is an Business entity 100%
(i) Rental (ii) Postal (iii) Air craft (iv)
Transport
1 January– 2021 www.femainindia.com
Satish Agarwal : + 9811081957 satishagarwal307@yahoo.com
Services provided by an Overseeing
15 Recipient is RBI 100%
Committee Members to RBI
Services provided by a Business Recipient is a banking company as
16 100%
Facilitator (BF) located in taxable Territory
Services provided by a Direct Selling Recipient is a banking company as
17 100%
Agent (DSA) to a banking company located in taxable Territory
Renting Services provided by Govt. to
18 Recipient as a GST registered person 100%
GST Registered person
Services provided by an agent of a
Recipient is another BC as located in
19 Business Correspondent (BC) to 100%
Taxable Territory
another BC
Security Services as provided to GST
20 Recipient is a GST registered person 100%
registered person
Recipient is a both corporate as located
21 Renting of Motor Vehicle 100%
in taxable territory
Services provided as TDR, FSI or long
Recipient is a promoter of commercial
22 term lease to a promoter of commercial 100%
construction
construction
Services of Lending of Securities under
23 Recipient is a Borrower 100%
Securities Lending Scheme
(B) RCM for the Goods
Supplier of Receiver of Rate of
S.No. Description of Goods
Goods Goods RCM %
GST Registered
1 Cashew Nuts in shell Agriculturist 100%
Person
GST Registered
2 Bidi Wrapper Leaves (Tendu) Agriculturist 100%
Person
GST Registered
3 Tobacco Leaves Agriculturist 100%
Person
Manufacturer GST Registered
4 Silk Yarn 100%
of silk yarn Person
Lottery
5 Supply of Lottery Govt. distributor or 100%
Selling agent
2 January– 2021 www.femainindia.com
Satish Agarwal : + 9811081957 satishagarwal307@yahoo.com
GST Registered
6 Raw Cotton Agriculturist 100%
Person
‘Used’ vehicles, seized confiscated goods, old & GST Registered
7 Govt. 100%
used goods, waste and scrap Person
Disclaimers:
(I) Despite our best efforts taken to avoid any error or omission, there may still be chances for such
errors and omissions to be crept in inadvertently. Author shall not be responsible for any
damage or loss in whatever manner, consequent to any action taken on the basis of contents of
this article, caused to any person, whether a reader or not.
(II) The text of this email may contain information, which is proprietary and/or confidential or
privileged in nature belonging to Satish Agarwal The recipient if not the addressee should not
use this message if erroneously received and access to this email by anyone other than the
addressee is unauthorized. The recipient if not the intended addressee should delete the
message. The recipient acknowledges that Satish Agarwal may be unable to exercise control or
ensure or guarantee the integrity of the text of the email message and the text is not warranted
as to completeness and accuracy and is subject to change without notice. The recipient further
acknowledges that the views contained in the email message are those of the sender and may
not necessarily reflect those of Satish Agarwal
3 January– 2021 www.femainindia.com
