Central Government mandates reverse charge on specified goods under the Central Goods and Services Tax Act, 2017.
Recommendations from the Council guide this provision, shifting tax liability to the recipient of such goods.
Goods listed in the table, including cashew nuts, bidi wrapper leaves, and tobacco leaves, fall under this mechanism.
Suppliers, such as agriculturists for certain items and silk yarn manufacturers, trigger the reverse charge.
Registered persons receiving these goods are liable to pay central tax under reverse charge.
State governments, Union Territories, or local authorities supplying lotteries also fall under this provision.
Effective from July 1, 2017, this measure aims to ensure tax compliance and streamline supply chain transactions.