Reverse charge exemption notifications by Stat goverments

[Yatin Bhopi]

Dear expert

There are notifications issued under IGST and CGST Act i.e. Notification 32/2017-IGST & 38/2017-CGST, regarding exemption from taxes under reverse charge (purchases from unregistered supplier) whereas under SGST act said notifications has not been issued so far.

In absence of exemption notifications by states, is SGST payable?

Please clarify

[KASTURI SETHI]

Not payable. States will follow CGST on this aspect.

[rajkumar shukla]

There is no need to issue separate notification by states.kindly see section 11(4) of state gst Act(all state acts would read like this) that is being reproduced below.

Any notification issued by the Central Government, on the recommendations of the Council, under sub-section (1) of section 11 or order issued under sub-section (2) of the said section of the Central Goods and Services Tax Act shall be deemed to be a notification or, as the case may be, an order issued under this Act.

[KASTURI SETHI]

Sh.Shukla Ji,. Sir Thanks for prompt citation.

[rajkumar shukla]

welcome sir.

[Yatin Bhopi]

Thanks a lot sir

[DR.MARIAPPAN GOVINDARAJAN]

I also endorse the views of experts.

[Ganeshan Kalyani]

I agree with the experts.

AI Summary

Deemed central notification applies: state GST follows central reverse-charge exemption, so no separate state notice required.
Central exemption notifications under the CGST/IGST framework are treated as notifications under the State GST Acts by operation of a deeming provision, so a separate state notification is not required and SGST need not be collected where the central reverse-charge exemption applies.