GST Reverse Charge Gone ???

Q: is the Reverse charge on Housing Society Gone ?

Govt suspended in Oct 2017.

Mr. Prabhat Jain, Apartment Resident

21st November 2017

Legal in Kharadi, Pune

gst

reverse charge under gst

reverse charge mechanism under gst

what is reverse charge under gst?

gst reverse charge

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Replies (2)

Hi Nikhil and Ramdas,
Thanks for your detail information. Would I like to know more about Reverse Charge under Service Tax? What is the purpose of this charge?

Gauri Shinde, Pune

22nd November 2017

Comment

Hello Gauri,
At present, there are total 15 services on which Reverse Charge Mechanism is made applicable out of which on 2 services concept of Partial Reverse Charge mechanism applies. Under Partial Reverse charge mechanism, both service provider and service receiver are jointly made liable to pay service tax.

The purpose of this charge is to increase tax compliance and tax revenues. Earlier the govt was unable to collect service tax from various unorganized sector like goods transport.

Nikhil Kanetkar, Pune

22nd November 2017

Yes, earlier under normal supplies, where supplier collects the tax from the recipient and deposits the same after adjusting his output tax liability with input tax credits, but under the reverse charge mechanism liability to pay tax on a particular supply is on the recipient of the supply.
The purpose of this charge is to increase tax compliance and tax revenues. Earlier the govt was unable to collect service tax from various organized sectors like goods transport.

Nikhil Kanetkar, Pune

22nd November 2017

Comment

Yes, the concept of reverse charge mechanism is already present in service tax. But in GST regime, the reverse charge may be applicable for both services as well as goods. At Present, There are total 15 Services on which Reverse charge mechanism is made applicable out of which on 2 services concept of Partial Reverse charge mechanism applies.

Ramdas Palsule, Pune

22nd November 2017