The Central Board of Indirect Taxes and Customs (CBIC) has notified the applicability of reverse charge mechanism under the Goods and Services Tax ( GST ) to some more services.
The notification issued on Monday amends notification No. 13/2017- Central Tax (Rate) so as to specify services to be taxed under Reverse Charge Mechanism (RCM) as recommended by Goods and Services Tax Council in its 31st meeting held on 22.12.2018.
As per the recommendation of the GST Council, the Parliament and the State legislatures shall be extended the same tax treatment with regard to payment of tax under RCM (reverse charge mechanism)as available to Central and State Governments.
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The Notification said that the security services (supply of security personnel) provided to a registered person, except Government Departments which have taken registration for TDS and entities registered under composition scheme, shall be put under RCM.
Further, the services provided by unregistered Business Facilitator (BF) to a bank and agent of Business correspondent (BC) toa BC shall be put under RCM.
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