The payment of GST on Reverse Charge basis for supplies by Unregistered person to registered person has been suspended till 31.03.2018 vide notifications dated 13.10.2017. Is there a clarity on the date of applicability of this suspension. One view is that the notification is prospective in nature and hence GST is to be remitted on Unregistered dealer supplies received till 12.10.2017. Request experts to please give your views on this.
In case the notification is applicable only from 13.10.2017, please also give your views on whether the date of receipt of supply, date of invoice or the date of payment is to be reckoned to determine if GST under RCM is to be remitted .
Debate on GST Suspension for Reverse Charge Mechanism: Retrospective or Prospective Application? Clarity Needed on Notification's Intent. The discussion revolves around the suspension of the Goods and Services Tax (GST) on a reverse charge mechanism (RCM) for supplies from unregistered to registered persons, effective until March 31, 2018. A notification dated October 13, 2017, lacks clarity on whether it applies retrospectively or prospectively. Some participants argue for a prospective application, starting from October 13, 2017, while others suggest it should be retrospective to alleviate business hardships. The debate also touches on whether the date of supply, invoice, or payment should determine GST remittance under RCM. Participants express differing views on the notification's intent and applicability. (AI Summary)
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