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RCM ON SUPPLIES BY UNREGISTERED PERSONS COMES INTO EFFECT

The Central Board of Indirect taxes & Customs (“CBIC”) has notified that Exemption from tax under ‘Reverse Charge Mechanism (RCM)’ under GST stands rescinded w.e.f. February 01, 2019 in respect of Intra-state Purchases of Goods and Services from Unregistered Dealers (of value exceeding Rs. 5,000 per day), in view of bringing into effect, the amendments (regarding RCM on supplies by unregistered persons) in the Amended CGST/ IGST/ UTGST Acts 2018. Consequently Notification No. 8/2017- Union Territory Tax (Rate), dated the 28th June, 2017, Notification No. 8/2017-Central Tax (Rate), dated the 28th June, 2017, and Notification No. 32/2017-Integrated Tax (Rate), dated the 13th October, 2017, have been rescinded.

The said Notification can be accessed as follows: 1. Central Tax (Rate): Notification No. 01/2019 – Central Tax (Rate) 2. Integrated Tax (Rate): Notification No. 01/2019 – Integrated Tax (Rate) 3. Union Territory Tax (Rate): Notification No. 01/2019 – Union Territory Tax (Rate)

 

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