What is the new rule of RCM under GST?
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The primary "new" rules for the Reverse Charge Mechanism (RCM) under GST in late 2024 and 2025 focus on mandatory self-invoicing timelines, e-invoicing integration, and specific category updates like the treatment of sponsorship services and metal scrap.
What are the recent changes in RCM rules?
Rule 47A, effective 1 Nov 2024, introduced new self-invoicing and time-of-supply provisions for RCM. Recipients must now generate self-invoices within 30 days of receiving goods or services from unregistered suppliers to remain eligible for ITC.
What is the RCM rule in GST 2025?
Reverse Charge Mechanism (RCM) shifts the GST payment responsibility from the seller to the buyer for specific goods and services. In 2025, the notified list includes select agricultural goods, certain services like legal or GTA, and imports.
What are the rules for RCM payment in GST?
As per Section 24 of the CGST Act 2017, it's mandatory for someone paying tax through the Reverse Charge Mechanism (RCM) to register, irrespective of the turnover amount, even if it is below the threshold limit. This rule applies when an unregistered supplier sells goods or services to a registered recipient.
What are the new GST rules from 1st January 2025?
The shift to a two-slab system of 5% and 18%, removing the earlier 12% and 28% rates, will make taxation more transparent and easier to follow. At the same time, a 40% on luxury and sin goods such as pan masala, tobacco, aerated drinks, high-end cars, yachts, and private aircraft ensures fairness and revenue balance.
New Updated List of Services under Reverse Charge 2025 | GST Reverse Charge Section 9[3]
What are the changes from 1st July 2025?
What are the new GST rules from July 2025? From 1st July 2025, GSTR-3B cannot be edited after filing. GSTR-1A is introduced for corrections, and GST returns older than 3 years from the due date cannot be filed.
What changes from 1st April 2025?
Some of the major tax changes effective from April 1, 2025, are revised tax slabs, rebate of up to Rs. 60,000, revised ITRU deadlines, calculation of partner's remuneration allowable as a deduction and revised TDS/TCS threshold limits.
Who is exempted from RCM under GST?
Note: RCM is not applicable to, - ➢ A Department or Establishment of the CG, SG or UT; or ➢ Local authority; or Governmental agencies, Who have taken registration under CGST only for deducting tax u/s 51 and not for making a taxable supply. ➢ A registered person paying tax under section 10 of the said Act.
What is the 60 days rule for RCM?
In case of supply of services, time of supply is earliest of - Date of payment as per books of account or date of debit in bank account, whichever is earlier; or. The date immediately following sixty days from the date of issue of invoice or similar other document.
How does RCM work under GST?
Under GST, the Reverse Charge Mechanism (RCM) is a system that transfers the responsibility for paying taxes from the seller to the buyer of goods or services. In most cases, the seller collects GST from the buyer and pays it to the government. However, with RCM, this process is reversed.
Is GST still 9% in 2025?
The current standard GST rate in 2025 is 9%. The last GST rate increase in Singapore was from 8% to 9% from 1 January 2024. Imported goods are subject to GST at the standard rate of 9% in Singapore.
Who is responsible for reverse charge?
Under the reverse charge mechanism, the seller does not charge VAT on the invoice. Instead, the buyer is responsible for calculating the VAT due on the transaction and reporting it in their own VAT return as both output tax (as if they had sold the item) and input tax (as if they had paid the VAT).
Do I need GST if my turnover is below 20 lakhs?
If a company's annual sales are below Rs. 40 lakhs for goods or Rs. 20 lakhs for services, or if the startup deals in exempt items or services, it is not required to register for GST.
Is GST going to be 10%?
New GST Rate of 9% in 2024
Come 1 Jan 2024, the GST rate will be raised from 8% to 9%, as part of the two-step GST rate change announced by the Minister for Finance in Budget 2022.
From when is 40% GST applicable?
India's GST regime is undergoing a landmark transformation with the 56th GST Council meeting unveiling GST 2.0 - next-generation reforms simplifying tax slabs to 5%, 18%, and 40%. Effective from September 22, 2025, these reforms aim to ease compliance, boost consumption, and fuel economic growth.
What are the disadvantages of RCM?
Continuous Maintenance : One of main disadvantages of RCM is that it requires continuous and regular maintenance to keep assets safe from failure and more reliable. Requires Training and startup cost : Before performing RCM, training is mandatory and startup cost of RCM can be high.
What are the new changes in GST from April 1 2025?
Effective April 1, 2025, businesses with an Annual Aggregate Turnover (AATO) exceeding ₹10 crore must report B2B e-invoices to the IRP within 30 days from the invoice date. Previously, this rule applied only to taxpayers with AATO above ₹100 crore.
What is the GST limit for 40 lakhs?
1. Is the GST registration limit 20 lakhs or 40 lakhs? GST registration limits in regular category states are ₹40 lakhs for goods and ₹20 lakhs for services. Special category states have a limit of ₹20 lakhs.
What is the GST exemption for 2025?
The total of lifetime gifts and the estate are eligible for a lifetime exemption, which is set at $13.99 million in 2025. The exemption amount is indexed for inflation, and was scheduled to be reduced by half after 2025. The higher exemption level was made permanent and slightly increased to $15 million in 2026 by P.L.
Can we claim ITC on RCM in the same month?
This does not happen in the supplies under RCM. As the recipient is the one who pays the taxes, he can himself declare the invoices on which he wishes to claim ITC & claim the ITC for the same in the same month.
Is self-invoice mandatory for RCM?
Mandatory Registration: Any person liable to pay tax under RCM must register under GST, even if their turnover is below the threshold. Tax Payment: GST must be paid in cash (not through ITC) at the time of filing returns. Self‑Invoicing: If the supplier is unregistered, the recipient must issue a self-invoice.
What are the changes to Table 12 in GST April 2025?
A government advisory announces phase-wise changes to Table-12 in GST return forms GSTR-1 and GSTR-1A, effective April 2025. The modifications include separating B2B and B2C supply summaries by HSN code and mandating selection of HSN codes from a predefined dropdown menu, eliminating manual entry options.
What changes are coming in April 2025?
Enhanced tax return requirements will be introduced from April 6 and will apply for tax returns for 2025/2026 going forward. The voluntary requirement for taxpayers who start or cease to trade to report the date of commencement / cessation on their tax return will become a mandatory requirement.
What is 4A 4B 4C 6B 6C B2B invoices in GST?
TABLE 4A, 4B, 4C, 6B, 6C - B2B INVOICES - RECEIVER-WISE SUMMARY. In this table, you can add details of taxable outward supplies made to registered person. Additionally, invoices auto-populated from e-invoices will be available in this table. This page provides you the receiver-wise summary of the already added invoices ...