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.
Previous Notification No.8/2017-Central Tax (Rate) is as under:
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[TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]
GOVERNMENT OF INDIA MINISTRY OF FINANCE (Department of Revenue)
Notification No.8/2017-Central Tax (Rate)
New Delhi, the 28th June, 2017
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts intra-State supplies of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the central tax leviable thereon under sub-section (4) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017): Provided that the said exemption shall not be applicable 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 is or are not registered, exceeds five thousand rupees in a day.
2. This notification shall come into force with effect from the 1st day of July, 2017.
[F.No.354/117/2017-TRU]
(Mohit Tewari) Under Secretary to the Government of India |
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.
| MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 30th August, 2018/Bhadrapada 8, 1940 (Saka)
The following Act of Parliament received the assent of the President on the 29th August, 2018, and is hereby published for general information:—
THE UNION TERRITORY GOODS AND SERVICES TAX ACT, (AMENDMENT) 2018
NO. 33 OF 2018
[29th August, 2018.]
An Act to amend the Union Territory Goods and Services Tax Act, 2017.
BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:—
1. (1) This Act may be called the Union Territory Goods and Services Tax (Amendment)Act, 2018.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
2. In section 7 of the Union Territory Goods and Services Tax Act, 2017 (hereinafter referred to as the principal Act), for sub-section (4), the following sub-section shall be substituted, namely:––
“(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.”.
3. In section 9 of the principal Act, in clause (b), the following proviso shall be inserted, namely:–– “Provided that the input tax credit on account of Union territory tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax.”.
4. After section 9 of the principal Act, the following sections shall be inserted, namely:— “9A. Notwithstanding anything contained in section 9, the input tax credit on account of Union territory tax shall be utilised towards payment of integrated tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilised towards such payment.
9B. Notwithstanding anything contained in this Chapter and subject to the provisions of clause (c) of section 9, the Government may, on the recommendations of the Council, prescribe the order and manner of utilisation of the input tax credit on account of integrated tax, Central tax, State tax or Union territory tax, as the case may be, towards payment of any such tax.”.
DR. REETA VASISHTA, Additional Secretary to the Govt. of India. |
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.
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.
Notification No. 1/19 (Central Tax Rate) dated 29 Jan 2019 is as under:
| [To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section(i)]
Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs]
Notification No. 01/2019 – Central Tax (Rate)
New Delhi, the 29th January, 2019
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby rescinds the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 8/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, vide number G.S.R. 680 (E), dated the 28th June, 2017, except as respects things done or omitted to be done before such rescission.
2. This notification shall come into force with effect from the 1st day of February, 2019.
[F.No.20/06/16/2018-GST (Pt. II)]
(Gunjan Kumar Verma) Under Secretary to the Government of India
Note: – The principal notification No. 8/2017- Central Tax (Rate), dated the 28th June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 680 (E), dated the 28th June, 2017 and was last amended vide notification No. 22/2018-Central Tax (Rate), dated the 6th August, 2018, published vide number G.S.R. 743 (E), dated the 6th August, 2018. |
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 does not exceed Rs. 5,000 in a day. If you purchase RS. 10 goods, you have to pay GST under RCM basis.
GST notification No. 01/2019 – Central Tax (Rate):
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[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]
Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs] Notification No. 01/2019 – Central Tax (Rate) New Delhi, the 29th January, 2019
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby rescinds the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 8/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, vide number G.S.R. 680 (E), dated the 28th June, 2017, except as respects things done or omitted to be done before such rescission. 2. This notification shall come into force with effect from the 1st day of February, 2019 [F.No.20/06/16/2018-GST (Pt. II)]
(Gunjan Kumar Verma) Under Secretary to the Government of India
Note: – The principal notification No. 8/2017- Central Tax (Rate), dated the 28th June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 680 (E), dated the 28th June, 2017 and was last amended vide notification No. 22/2018-Central Tax (Rate), dated the 6th August, 2018, published vide number G.S.R. 743(E), dated the 6th August, 2018.
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– Shrutika
(Artical Assistant)
Nagpur
