Breaking News: Purchase from unregistered person now liable for GST under RCM
RCM on 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 has been made applicable in force w.e.f. 01/02/2019 by Notification No. 01/2019 – Central Tax (Rate) dated 29/01/2019.
RCM on supplies from unregistered dealers has been suspended till 30/09/2018 by Notification No. 22/2018 – Central Tax (Rate), Dated: 6th August, 2018 but the same has been rescinded by the Notification No. 01/2019 – Central Tax (Rate) dated 29/01/2019 and made RCM on supplies from unregistered dealers applicable w.e.f. 01/02/2019.
Hence, w.e.f. 1st February, 2019 the supplies of goods and services received from the Unregistered Dealers in excess of Rs. 5,000/- per day will be liable for Reverse Charge as per Section 9(4) of the CGST Act.
Section 9(4) of CGST act is amendment by way of CGST amendment act 2018 and the same is applicable from 1.2.2019 by way of notification no 2/2019 by which supplies from unregistered suppliers will be chargeable to GST only by way of notification.