Services provided by Overseeing Committee members to RBI is subject to GST under RCM
The Central Government, on Friday notified that Goods and Services Tax (GST) is payable on supply of services provided by Overseeing Committee members to RBI under reverse charge mechanism.
The Government issued a notification in this regard by amending the earlier notification No. 13/2017-CT(R) which provides for the categories of services on which tax will be payable under reverse charge mechanism under CGST Act.
Recently, the Reserve Bank of India (RBI) had reconstituted the oversight committee (OC) mechanism and increased the number of members to five from the earlier two.
The OC works with an expanded mandate to review, in addition to cases being restructured under the Scheme for Sustainable Structuring of Stressed Assets (S4A), resolution of other cases where the aggregate exposure of the banking sector to the borrowing entity is greater than Rs. 500 crore.