The Central Government has notified the list of goods taxable under the Reverse Charge Mechanism (RCM) under the proposed Integrated Goods and Services Tax (IGST) Act.
As per the reverse Charge mechanism, the person to whom the goods are supplied would be liable to pay tax instead of the supplier.
As per the Notification, goods such as State-running Lottery, Cashew Nuts, Silk Yarn, Bidi Wrapper Leaves, Tobacco leaves etc. are in the list.
In case of cashew nuts, not shelled or peeled, bidi wrapper leaves and tobacco leaves supplied by an agriculturalist to any registered person would be chargeable to GST by applying RCM.
In case of Silk yarn supplied by manufacturer to any registered person, RCM would be applied.
Lottery distributors or selling agents are bound to remit tax to the Government in case of lotteries run by the state Government, Union Territories or local bodies.
Read the full text of the Notification below.
