Reverse Charge, Goods and Services Tax - GST

[ROHIT GOEL]

Whether reverse Charge u/s 9(3) is made applicable w.e.f. 1-10-2019 or it is kept pending by some notification?

Posts / Replies

[KASTURI SETHI]

Section 9(4) of CGST Act was deferred till 30.9.19 vide Notification No.22/18-CT(Rate) dated 6.8.18. Now Section 9(4) stands amended (substituted) w.e.f. 1.2.19 by S .4 of the CGST (Amendment) Act, 2018 (31 of 2018). So the general provision of RCM levy on supplies from unregistered persons has been replaced with authorizing the Govt. to notify class of registered persons who shall only pay GST under RCM in respect of supply of specified categories of goods or services or both received from an unregistered supplier.

Example

By virtue of above amendment of Section 9(4), Cement falling in chapter heading 2523 in the first schedule to the Customs Tariff Act, 1975 (51 of 1975). has brought under RCM vide Notification No.24/19-CT(R) dated 30.9.19.

After amendment, Section 9(4) regarding purchases from unregistered dealer stands no more deferred now..

[Ganeshan Kalyani]

The RCM u/s 9(3) is in force since from the beginning I.e. 01.07.2017.