So finally the notification has come. Now no need to pay GST under reverse charge for inward supplies from unregistered tax payers.
मार्च तक RCM हट गया है, unregistered से ख़रीद पर।
Below is the notification text for your reference.
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i)]
Government of India Ministry of Finance Department of Revenue
Central Board of Excise and Customs Notification No. 38/2017 – Central Tax (Rate)
New Delhi, the 13th October, 2017
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.8/2017- Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 680(E), dated the 28th June, 2017, namely:-
In the said notification, the proviso under Paragraph 1 shall be omitted.
2. The exemption contained in the notification No. 8/2017-Central Tax (Rate) dated the 28th June, 2017 as amended by this notification shall apply to all registered persons till the 31st day of March, 2018.
[F. No.349/74/2017-GST (Pt.)]
(Ruchi Bisht) Under Secretary to the Government of India
Note: - The principal notification No.8/2017-Central Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i) vide number G.S.R. 680 (E), dated the 28th June, 2017.
Here is the text of notification no. 8 dated 28/06/2017 which exempted purchase from RCM but provided that where purchase is more than 5000 in a day GST under RCM was to be paid.
Below line is deleted from earlier notification, that means no RCM.
Provided that the said exemption shall not be applicable where the aggregate value of such supplies of goods or service or both received by a registered person from any or all the suppliers, who is or are not registered, exceeds five thousand rupees in a day.
#GSTsathi Updates: RCM U/s 9(4) withdrawn till 31/03/2018. No change in RCM U/s 9(3).
Notification No 38/2017-Central Tax (Rate) dated 13 October 2017
Registered person need not to pay CGST and SGST on any supplies of goods or services received from unregistered person. This exemption effective from 13 October 2017 upto 31 March 2018. Similar exemption also provided for IGST.
By Manoj Agarwal
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