Reverse charge applicable on Body Corporate or Company who is not registered under GST
Normally, In GST a seller is required to pay GST in forward charge but there are some situations also where a buyer is required to pay GST. Here is the list of services on which Body Corporate or Company is required to pay GST even if it is not registered under GST. Reverse charge (RCM) is depend upon various things like the person is registered or not, what is the status of the person like it is a partnership firm or body corporate or business entity etc.
, what is the location of service provided etc. But I hereby discuss RCM applicability for Body Corporate or Company only. This is the full list of services where GST is paid by Body Corporate or Company in reverse charge i.e on purchase or following services body corporate is required to pay the GST under reverse charge:
, what is the location of service provided etc. But I hereby discuss RCM applicability for Body Corporate or Company only. This is the full list of services where GST is paid by Body Corporate or Company in reverse charge i.e on purchase or following services body corporate is required to pay the GST under reverse charge:
Applicability of Reverse Charge on Body Corporate or Company in the following situations:
| Sl.No. | Category of Supply of Services | Supplier of service |
|---|---|---|
| (1) | (2) | (3) |
1
|
Supply of Services by a goods transport agency (GTA) in respect of transportation of goods by road
|
Goods Transport Agency (GTA), who has not paid central tax at the rate of 6%
|
2
|
Services supplied by an individual advocate including a senior advocate or firm of advocates by way of legal services, directly or indirectly.
|
An individual advocate including a senior advocate or firm of advocates.
|
3
|
Services supplied by an arbitral tribunal
|
An arbitral tribunal
|
4
|
Services provided by way of sponsorship
|
Any person
|
|
| ||
5
|
Services supplied by the Central Government, State Government, Union territory or local authority excluding, -
1. renting of immovable property, and
2. services specified below-
(i) services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Central Government, State Government or Union territory or local authority;
(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;
(iii) transport of goods or passengers.
|
Central Government, State Government, Union territory or local authority
|
6
|
Services supplied by a director of a company or a body corporate
|
A director of a company or a body Corporate
|
7
|
Services provided by way 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, provided to a body corporate.
|
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%. to the service recipient |
What is the meaning of Body corporate in case of reverse charge?
Meaning of body corporate not defined in the notification but the reference of company act given in the notification which is as follows:
“Body Corporate” has the same meaning as assigned to it in clause (11) of section 2 of the Companies Act, 2013.
Definition as per companies act also produced herewith:
"body corporate" or "corporation" includes a company incorporated outside India, but does not include—
(i) a co-operative society registered under any law relating to co-operative societies; and
(ii) any other body corporate (not being a company as defined in this Act), which the Central Government may, by notification, specify in this behalf
Companies act also not defined the meaning of Body corporate but it clearly defines that registered co-operative society will not be fall under the definition of body corporate as defined, and also it clearly include the company registered under companies act.
