• Introduction: Notification No. 13/2017-Central Tax (Rate), issued by the Ministry of Finance, Government of India, outlines provisions related to the Central Goods and Services Tax Act, 2017. It specifically addresses categories of services subject to reverse charge and specifies the suppliers and recipients involved.

    Services under Reverse Charge Mechanism (RCM) – Updated till 21-08-2023:

    1. Supply of Services by Goods Transport Agency (GTA):

      • Supplier: Goods Transport Agency (GTA)
      • Recipient: Any specified entity including government bodies, corporate bodies, and partnership firms.
      • Condition: The reverse charge doesn’t apply if the GTA is an individual or unregistered person providing services to a registered person.
    2. Legal Services:

      • Supplier: Individual advocates, including senior advocates or firms of advocates.
      • Recipient: Any business entity located in the taxable territory.
    3. Arbitral Tribunal Services:

      • Supplier: Arbitral tribunal
      • Recipient: Business entity located in the taxable territory.
    4. Sponsorship Services:

      • Supplier: Any person, corporate or partnership firm.
      • Recipient: Any business entity located in the taxable territory.
    5. Services by the Government to Business Entity (Excluding Specified Services):

      • Supplier: Central Government, State Government, Union territory, or local authority.
      • Recipient: Any business entity located in the taxable territory.
    6. Renting of Immovable Property to Registered Person:

      • Supplier: Any person.
      • Recipient: Any registered person.
    7. Transfer of Development Rights or FSI for Construction:

      • Supplier: Any person.
      • Recipient: Promoter.
    8. Services by a Director to the Company or Body Corporate:

      • Supplier: Director of a company or body corporate.
      • Recipient: The company or body corporate.
    9. Transfer or Use of Copyright:

      • Supplier: Music composer, photographer, artist, etc.
      • Recipient: Music company, producer, or similar entities.
    10. Author’s Services – Optional Reverse Charge:

      • Supplier: Author.
      • Recipient: Publisher.
      • Condition: The author can exercise an option to pay tax under forward charge.
    11. Lending of Securities Services:

      • Supplier: Lender (person who deposits securities)
      • Recipient: Borrower (person who borrows securities).

    Declaration Forms:

    • Annexure I: Declaration form for authors exercising the option to pay tax under forward charge.
    • Annexure II: Declaration to be made in the invoice by the author who exercised the option.
    • Annexure III: Declaration by entities that have opted to pay tax on GTA services under forward charge and have not reverted to reverse charge.

    Additional Definitions and Explanations:

    • Definitions for terms like “Body Corporate,” “Insurance Agent,” “Renting of Immovable Property,” etc.
    • Explanation regarding the treatment of litigant entities for legal services.

    Important Notes:

    • Certain conditions and exceptions are specified for each category of service.
    • The notification includes explanations for terms not defined in the notification but defined in related Acts.
    • Provisions for Central Government, State Governments, and other authorities are included.

    This summary provides an overview, and for detailed compliance, the complete text of the notification should be referred to.