Updated RCM List: Services Covered Under RCM (Effective from January 2025)

Rate this post

The Reverse Charge Mechanism (RCM) under GST requires the recipient of specified services to pay tax instead of the supplier. Effective January 2025, certain revisions have been introduced. RCM on supply of services as per Under Notification No. 13/2017-Central Tax (rates) and Notification No. 07/2019- Central Tax (Rate)

Sl. No.	Category of Supply of Services	Supplier of Service	Recipient of Service
1	Supply of Services by a goods transport agency (GTA) in respect of transportation of goods by road to: (a) Any factory registered under or governed by the Factories Act, 1948; (b) Any society registered under the Societies Registration Act, 1860 or any other law; (c) Any co-operative society established by law; (d) Any registered person under GST laws; (e) Any body corporate; (f) Any partnership firm; (g) Any casual taxable person. Exceptions are provided.	Goods Transport Agency (GTA)	Any factory, society, co-operative society, registered person, body corporate, partnership firm, or casual taxable person located in the taxable territory.
2	Services supplied by an individual advocate including a senior advocate or a firm of advocates by way of representational services before any court, tribunal, or authority to a business entity in the taxable territory.	An individual advocate including a senior advocate or firm of advocates	Any business entity located in the taxable territory.
3	Services supplied by an arbitral tribunal to a business entity.	An arbitral tribunal	Any business entity located in the taxable territory.
4	Services provided by way of sponsorship to any body corporate or partnership firm.	Any person (other than a body corporate). Changed from 16 Jan 2025 (NN 07/2025)	Any body corporate or partnership firm located in the taxable territory.
5	Services supplied by the Central Government, State Government, Union territory, or local authority to a business entity, excluding: (i) Renting of immovable property; (ii) Services by the Department of Posts; (iii) Services in relation to an aircraft or vessel; (iv) Transport of goods or passengers.	Central Government, State Government, Union territory, or local authority	Any business entity located in the taxable territory.
5A	Services supplied by the government by way of renting of immovable property to a registered person.	Central Government, State Government, Union territory, or local authority	Any person registered under GST.
5AA	Service by way of renting of residential dwelling to a registered person.	Any person	Any registered person.
5AB	Service by way of renting of any immovable property other than residential dwelling. Effective from 10.10.2024.	Any unregistered person	Any registered person (other than a person who has opted for composition levy). Changed from 16 Jan 2025 (NN 07/2025)
5B	Services supplied by any person by way of transfer of development rights or Floor Space Index (FSI) for construction of a project by a promoter.	Any person	Promoter.
5C	Long-term lease of land (30 years or more) by any person against consideration in the form of upfront amount or periodic rent for construction of a project by a promoter.	Any person	Promoter.
6	Services supplied by a director of a company or a body corporate to the said company or body corporate.	A director of a company or a body corporate	The company or body corporate located in the taxable territory.
7	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.
8	Services supplied by a recovery agent to a banking company, financial institution, or NBFC.	A recovery agent	A banking company, financial institution, or NBFC located in the taxable territory.
9	Supply of services by an author, music composer, photographer, artist, or the like by way of transfer of copyright related to literary, dramatic, musical, or artistic works to a publisher, music company, producer, or the like. Effective from 01.10.2019.	Author, music composer, photographer, artist, or the like	Publisher, music company, or producer located in the taxable territory.
9A	Supply of services by an author by way of transfer or permitting the use of copyright for literary works to a publisher, subject to specific declarations and registration under GST laws. Effective from 01.10.2019.	Author	Publisher located in the taxable territory.
10	Services supplied by members of the Overseeing Committee to the Reserve Bank of India.	Members of the Overseeing Committee constituted by the Reserve Bank of India	Reserve Bank of India.
11	Services supplied by individual Direct Selling Agents (DSAs) other than body corporates or firms to banks or NBFCs.	Individual Direct Selling Agents (DSAs) other than body corporates, partnerships, or LLPs	Banking company or NBFC located in the taxable territory.
12	Services provided by business facilitators (BF) to a banking company.	Business facilitator (BF)	Banking company located in the taxable territory.
13	Services provided by agents of business correspondents (BC) to business correspondents.	Agent of business correspondent (BC)	Business correspondent located in the taxable territory.
14	Security services (supply of security personnel) provided to a registered person. Exceptions apply for certain government entities and composition taxpayers.	Any person other than a body corporate	Registered person located in the taxable territory.
15	Services by renting motor vehicles where the cost of fuel is included, provided to a body corporate. Effective from 01.10.2019.	Any person other than a body corporate who does not issue an invoice charging central tax at 6%.	Any body corporate located in the taxable territory.
16	Services of lending of securities under SEBI’s Securities Lending Scheme, 1997. Effective from 01.10.2019.	Lender	Borrower under SEBI’s Scheme, located in the taxable territory.

Note: CBIC has brought supply of metal scarp by any unregistered person to any registered person under RCM vide Notification No. 06/2024-Central Tax (Rate) dated 08.10.2024

Explanations:

(a)The person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this notification.

(b) “Body Corporate” has the same meaning as assigned to it in clause (11) of section 2 of the Companies Act, 2013.

(c) the business entity located in the taxable territory who is litigant, applicant or petitioner, as the case may be, shall be treated as the person who receives the legal services for the purpose of this notification.

(d) the words and expressions used and not defined in this notification but defined in the Central Goods and Services Tax Act, the Integrated Goods and Services Tax Act, and the Union Territory Goods and Services Tax Act shall have the same meanings as assigned to them in those Acts.

(e) A “Limited Liability Partnership” formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (6 of 2009) shall also be considered as a partnership firm or a firm.

(f) “insurance agent” shall have the same meaning as assigned to it in clause (10) of section 2 of the Insurance Act, 1938 (4 of 1938).

(g) “renting of immovable property” means allowing, permitting or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property.’.

(h) Provisions of the Notification No. 13/2017 Central Tax (Rate), in so far as they apply to the Central Government and State Governments, shall also apply to the Parliament, State Legislatures, and w.e.f. 01.03.2023 to Courts and Tribunals.

(i) The term “apartment” shall have the same meaning as assigned to it in clause (e) under section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2017).

(j) the term “promoter” shall have the same meaning as assigned to it in clause (zk) under section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2017).

(k) the term “project” shall mean a Real Estate Project (REP) or a Residential Real Estate Project (RREP);

(l) “the term “Real Estate Project (REP)” shall have the same meaning as assigned to it in in clause (zn) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016).

(m) The term “Residential Real Estate Project (RREP)” shall mean a REP in which the carpet area of the commercial apartments is not more than 15 per cent. of the total carpet area of all the apartments in the REP.

(n) “floor space index (FSI)” shall mean the ratio of a building’s total floor area (gross floor area) to the size of the piece of land upon which it is built.”

Applicability of RCM on various categories is as under:

Serial No.	Details	Effective Date	Notification Reference
5AB	“than a person who has opted to pay tax under composition levy” inserted	16th January 2025	Notification No. 07/2025-Central Tax (Rate)
4	After the words “Any person”, the words “other than a body corporate” inserted	16th January 2025	Notification No. 07/2025-Central Tax (Rate)
1 to 5 and 9	Applicable	1st July 2017 and 1st October 2019	N/A
5A	Applicable	25th January 2018	N/A
5AB	Applicable	10th October 2024	Notification No. 9/2024-Central Tax
10	Applicable	13th October 2017	N/A
11	Applicable	27th July 2018	N/A
12, 13, 14	Applicable	1st January 2019	N/A
5B and 5C	Applicable	1st April 2019	N/A
15 & 16	Applicable	1st October 2019	N/A
5AA	Applicable	18th July 2022	N/A
5AB	Applicable	10th October 2024	N/A