GST ON RCM SUSPENSION DATE

[Greeshma Vp]

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 .

AI Summary

Reverse Charge suspension affects GST liability for supplies from unregistered persons; applicability debated as prospective or retrospective.
Suspension of Reverse Charge Mechanism liability for supplies by unregistered persons pauses GST collection on those inward supplies until the suspension end date; contributors disagree whether the suspension is prospective from issuance or retrospectively beneficial to taxpayers, and note that an official clarification indicates prospective effect while point of taxation rules mean tax under reverse charge is to be accounted for and paid before filing the monthly return (GSTR 3).