GST

Notification for RCM on supplies by unregistered persons rescinded

Notification for RCM on supplies by unregistered persons rescinded with effect from 1st day of February, 2019.

In view of the fact that specified persons under section 9(4) of CGST Act 2017 (as amended by 2018 Act) have not specified yet, the RCM provisions are not applicable from 01-02-2019 despite the Notification No. 8/2017 being rescinded

Government of India
Ministry of Finance
(Department of Revenue)
[Central Board of Indirect Taxes and Customs]

Notification No. 01/2019 – Central Tax (Rate)

New Delhi, the 29th January, 2019

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 rescinds 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, 2017published in the Gazette of India, Extraordinary, vide number G.S.R. 680 (E), dated the 28th June, 2017, except as respects things done or omitted to be done before such rescission.

2. This notification shall come into force with effect from the 1st day of February, 2019.

[F.No.20/06/16/2018-GST (Pt. II)]

(Gunjan Kumar Verma)
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 and was last amended vide notification No. 22/2018-Central Tax (Rate), dated the 6th August, 2018, published vide number G.S.R. 743 (E), dated the 6th August, 2018.

— end of the notification —

RCM still not applicable from 01.02.2019

Under section 9(4) of the CGST Act, 2017, the central tax in respect of the supply of taxable goods or services by a unregistered supplier to a registered person is required to be paid by the recipient on reverse charge basis. 

Notification No. 8/2017 had provided exemption from RCM to intra-State supplies.

The exemption was not available where aggregate value of such supplies of goods or service received by a registered person from any or all the unregistered suppliers exceeded five thousand rupees in a day. However the RCM was suspended by subsequent notifications

Meantime the section 9(4) of the CGST Act was amended vide CGST Amendment Act 2018 to provide that the Government shall specify a class of registered persons who shall, be liable to RCM for goods/services received from an unregistered supplier.

In view of the above RCM provisions under section 9(4) of CGST Act 2017 (as amended) are not applicable despite the Notification No. 8/2017 being rescinded

Also Read:
Revised and up to date List of services covered under RCM u/s 9(3) as on 01.01.2019 Click Here >>

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View Comments

  • Sir,

    I have an query. Please suggest.

    We are running a factory in Himachal as a partnership firm. We are providing Tea and snacks as refreshment to our man power there on daily basis and for which we are getting a bill on monthly basis from the canteen runner. He is a unregistered dealer. Pls, let me know, whether GST is applicable on this service ?

    Thanks

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