Important clarification related to Notifications dt. 29/01/2019
CBIC issued notification No. 1/19 (Central Tax Rate) dt.29 Jan 2019 to rescind notification No. 8/2017 Central Tax Rate dt.28 Jun 2017.
In earlier notification, it was stated that reverse charge will be applicable in case of intra state supply received from unregistered supplier except if aggregate value of such supply of goods/service from any or all of the unregistered suppliers does not exceed Rs. 5,000 in a day.
In this notification, it is stated that we are rescinding the previous notification. Meaning that now reverse charge will be applicable even if aggregate value of supply doest not exceed Rs. 5,000 in a day. If you purchase RS. 10 goods, you have to pay GST under RCM basis.
GST amendment act had been published on 30 Aug 2018 but appointment date was not decided earlier, but in Notification no. 02/2019 dt.29 Jan 2019, 1 Feb 2019 has been decided as Appointment day.
According to GST (Amendment) Act, 2018- section 9(4) amended so as to restrict the levy of tax on reverse charge basis on receipt of supplies of certain specified goods or services or both by notified classes of registered persons from unregistered suppliers.
attaching both GST notification and GST amendment Acts 2018
CA Rohit Goyal