RCM suspension under CGST ACT 2017

Dear all,

As per notification no 8/2017,

• Here by 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.

 As per notification no 38/2017, (Dated 13/10/2017)

• The proviso under notification 8/2017 shall be omitted.

As for section 13(1) of CGST act 2017,

• liability to pay tax on services shall arise at the time of supply.

As for section 13(3)of CGST act 2017,Time of supply is,

• in case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earlier of the following dates, namely:––

1. The date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or
2. The date immediately following sixty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier

Provided that where it is not possible to determine the time of supply under clause 1,2 the time of supply shall be the date of entry in the books of account of the recipient of supply

 Provided further that in case of supply by associated enterprises, where the supplier of service is located outside India, the time of supply shall be the date of entry in the books of account of the recipient of supply or the date of payment, whichever is earlier.

   As per above provisions,

           If time of supply falls on or after 13/10/2017 then there is no RCM liability.