RCM ON URD PURCHASE

[SURYAKANT MITHBAVKAR]

In case of purchase of notified goods from unregistered suppliers, Reverse charge mechanism shall be applicable to notified registered persons w.e.f. 01.02.19

Regarding the above GST Council will issue separate notification on those goods/services only RCM Applicable.

Is there any notification issue ?

If yes what is effective date of that notification either 01.02.19 or latest date

[Rajagopalan Ranganathan]

Sir,

Please see Notification No. 07/2019- Central Tax (Rate) dated 29.3.2019. This Notification will come into effect from 1.4.2019. This Notification relates to construction service only.

[Ganeshan Kalyani]

Time to celebrate that so many other petty purchases are not mentioned in the Notification. Therefore tax is not payable on the inward supply from an unregistered person except the civil related one which is given in the recent notification .

AI Summary

Reverse charge mechanism applies to notified purchases from unregistered suppliers; recent notification limits it to construction services only. The operative administrative reply identifies Notification No. 07/2019 - Central Tax (Rate) dated 29.3.2019, effective 1.4.2019, as applying to construction services only; accordingly, the reverse charge obligation under that notification applies to notified registered persons for construction/civil-related supplies from unregistered suppliers, while inward supplies from unregistered persons not covered by that construction-service notification are not subject to reverse charge under that instrument.