Supply from unregistered dealer

[janakiraman iyer]

Under section 9(4) supply from unregistered dealer to registered dealer is subject to RCM and this was exempted by notifications extended up to 30/9/19. But I understand that this exemption was withdrawn by notification no 1/2019. I also understand that section 9(4) was amened on 1/2/19 by which Govt has to notify class of persons who will be subject to RCM. Can anyone update the correct position as of now

[Rajagopalan Ranganathan]

Sir,

According to Section 9 (4) of CGST Act, 2017 "the Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both."

According to Notification No. 7/2019-Central Tax (Rate) dated 29.3.2019.

Only the above mentioned services are leviable to gst under reverse charge for time being

[Himansu Sekhar]

Nice explanation

[janakiraman iyer]

Thanks for the lucid explanation

AI Summary

Reverse charge mechanism on supplies from unregistered suppliers now limited to services and supplies notified by government.
Supply from unregistered suppliers is subject to the reverse charge under Section 9(4), whereby the Government may notify classes of registered recipients who must pay tax as recipients; previous general exemptions were withdrawn and reverse charge now applies only to services or supplies specifically listed in the Government notifications.