Notification No 07/2025-CTR
The Central Government has issued Notification No 07/2025-CTR to amend the Notification No 13/2017-CTR dated 28-06-2017 related to transactions on which RCM will be applicable.
The Changes are as under:
- Sponsorship services provided by body corporate now covered under forward charge mechanism, it replaced the earlier applicability of reverse charge mechanism on such transaction.In Simple words.
| Service | Supplier | Recipient | RCM/FCM |
| Sponsorship Service | Body Coporate | Any body corporate or partnership firm located in the taxable territory. | FCM |
| Any person other than Body Corporate | Any body corporate or partnership firm located in the taxable territory. | RCM |
2. Renting or leasing of immovable property by unregistered person to composite dealer is now Covered under Forward charge mechanism and out of the scope of RCM.
Both the changes are applicable from 16-01-2025.
