The Institute of Chartered Accountants of India (ICAI) has released a revised edition of the Handbook on Reverse Charge under GST. The newly launched handbook serves as a comprehensive resource designed to help tax professionals, businesses, and other stakeholders to navigate the intricacies of the Reverse Charge Mechanism (RCM) under India’s Goods and Services Tax (GST) system.
Goods and Services Tax is a comprehensive indirect tax system implemented in India to replace multiple central and state taxes. Introduced on July 1, 2017, GST was a significant tax reform aimed at simplifying the tax structure to ensure an indirect tax system across the country. GST subsumed various taxes such as VAT, service tax, excise duty, and others, streamlining compliance and reducing the cascading effect of taxation.
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The Handbook has been published by the GST & Indirect Taxes Committee of ICAI and consolidates essential legal provisions, procedural aspects, notifications, circulars, and case laws pertaining to RCM. Simplifying complex tax provisions and providing clarity on ambiguous legislation, the handbook is an effective guide for tax practitioners and registered businesses dealing with reverse charge transactions.
The Handbook details the legislation and procedural aspects of RCM, including the effect of time of supply rules and also the topic of Input Tax Credit (ITC) under RCM. Additionally, it explains the invoicing requirements for both suppliers and recipients, including self-invoicing obligations when dealing with unregistered suppliers. The handbook also provides clarifications from the Central Board of Indirect Taxes CBIC, references to important case laws, and sector-specific examples to help professionals navigate compliance more effectively.
The publication also includes a detailed list of goods and services covered under RCM, such as cashew nuts, bidi wrapper leaves, tobacco leaves, raw cotton, and various professional services, along with corresponding notifications and amendments.
The Handbook contains a foreword by CA Ranjeet Kumar Agarwal, President of ICAI, and CA Charanjot Singh Nanda, Vice-President of ICAI, appreciating the continued efforts undertaken by ICAI to support professionals in navigating the ever-evolving GST framework.
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Additionally, the publication acknowledges the efforts of CA. Sushil Kumar Goyal (Chairman, GST & Indirect Taxes Committee) and CA. Rajendra Kumar P (Vice-Chairman, GST & Indirect Taxes Committee), along with expert contributors such as CA. Arun Chajjer, CA. Anup Luharuka, and CA. Abhishek Tibrewal.
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