Section 9(4) dealt with RCM liability in case of purchase of goods and/or services by registerd persons from unregistered persons.
By virtue of Notification No. 8/2017 Central Tax (Rate), as amended from time to time, Govt. had suspended the provisions of Sec 9(4) till 30.9.2019. Sec 9(4) dealt with RCM liability in case of purchase of goods and/or services by registerd persons from unregistered persons.
Now, in the CGST Amendment Act, Sec 9(4) has been completely overhauled and has been substituted. As per the amended provisions, Govt. shall notify a class of registered person on whom the requirement of discharging GST on RCM basis w.r.t. goods and/or services procured from unregistered persons shall apply. The said amendment is effective 1st February 2019.
Since, the said Section 9(4) has been completely overhauled, there is no need for Not. 8/2017 Central Tax (Rate). Hence, vide Notification No. 1/2019 Central Tax (Rate), Government has rescinded the said notification.
In short, the provision of discharging tax on RCM basis on goods and/or services from unregistered persons is still not applicable. Govt, at a later date, may, by way of Notification, may specify a class of registered person on whom the RCM provisions may become applicable.
[30/01, 21:29] CA Arvind from group: In short, nothing changes as far as RCM provisions relating to purchases from unregistered persons is concerned.
This, notification, effectively is a procedural requirement. Nothing else.