RCM 9(4) Confusion w.e.f. 1/2/19 Clarified,RCM Applicable, 1st feb,CA RAJENDRA ARORA

RCM 9(4) Confusion w.e.f. 1/2/19 Clarified,RCM Applicable, 1st feb,CA RAJENDRA ARORA Video Gear{वीडियो बनाने के लिए उपयोग किये गए इक्विपमेंट्स) 👇🏻👇🏻👇🏻👇🏻👇🏻👇🏻👇🏻👇🏻👇🏻👇🏻👇🏻 My mic :- https://amzn.to/2lvwgMA My camera (cheapest price Video quality higher) :- https://amzn.to/2InZypj Lights used in Video :- https://amzn.to/2ImRoh3 Mobile /camera stand(Tripod) :-https://amzn.to/2lvmOJ1 GREEN SCREEN EFFECT:- https://amzn.to/2DCACeF My mobile phone {best camera phone} :- https://amzn.to/2tyWgdv Laptop :- https://amzn.to/2yCY4YW Mobile Telescope:- https://amzn.to/2ziXM9Y _ GST BOOK {FOR PRACTIONER} :- https://amzn.to/2MQWJR8 GST BOOK FOR ALL {BE THE EXPERT IN GST} :- https://amzn.to/2tFkXFx _ RCM Back again from 01.02.2019, and this time there will not be any limit of Rs 5,000/-for applicability of RCM [ Read Notification] posted by TaxKnowledge Team on 30-1-2019 Notification no 01/2019 of Central Tax dated 29.01.2019 issued whereby it has been stated that notification no 8/2017 has been rescinded w.e.f 1st February 2019. Notification 8/2017 of central tax was issued by which the government has stated that GST is not applicable under RCM 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 are or are not registered, do not exceeds five thousand rupees in a day. Thereafter, on 13.10.2017 vide Notification No. 38/2017 – Central Tax (Rate) Government has amended notification no 8/2017 and thereby deleted conditions mentioned therein which states that RCM is not application till value of such supplies of goods or service or both received by a registered person from any or all the suppliers, who are or are not registered, do not exceeds five thousand rupees in a day. Therefore, after 13.10.2017 RCM was kept suspended till 31.03.2018. On 23.10.2018 and thereafter on 29.06.2018 RCM was kept suspended till 30.06.2018 and thereafter till 30.09.2018 vide Notification No. 10/2018 – Central Tax (Rate) and Notification No. 12/2018 – Central Tax (Rate). On 06.08.2018 vide Notification No. 22/2018 – Central Tax (Rate) date was further extended till 30.09.2019. Now on 29.01.2019 government has withdrawn the exemption given to all supplier from RCM by withdrawing the notification no 08/2017 central tax rate. Due to this withdrawal Section 9(4) of CGST Act 2017 again become operational and hence any supply received from unregistered supplier will attract RCM provision that too without any limit ( that is even if Rs 10 spent RCM is applicable). The main question before supplier, Is RCM really back ? and if yes will they need to pay GST on all spending that is even without any limit of Rs 5000/-. To answer, we need to go through Notification no 02/2019 whereby government made amendment in CGST Act 2017 effective from 01.02.2019 and One of the crucial amendment was in section 9(4) which is as under:- “(4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both.”. What does it mean, it means the government will notify the class of person on whom section 9(4) that is RCM will be applicable till they notify the person or class of person it will not be made operational. To summarised above, RCM provision u/s 9(4) of CGST Act become operational from 01.02.2019 as per the notification no 02/2019 but since the government has not notified the class of person on whom RCM will be applicable it will again by operation of law become non operational till government notify class of person on whom section 9(4) will be applicable. ================================================= Instagram Page :- http://bit.ly/2QJtrcO SUBSCRIBE FOR STAY UPDATED:- https://www.youtube.com/channel/UC-pFA9W0jwf4aHwTJu1aBqg Whatsapp group :- http://bit.ly/2BzNKPt Telegram chat group:- t.me/teacherbypassion Fb page :- http://bit.ly/2QJC4El Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use. Video credit:- https://youtu.be/LgtIRNuvsOQ