9(4) Applicability

[Kunal Agrawal]

The limit of 5000 per day given under NOTIFICATION NO. 8/2017-CENTRAL TAX (RATE), DATED 28-6-2017 shall be linked to payment.

Like rent of 10000 per month paid for July-17 on 31-07-2017

Can we take ground that as amount paid is below 5000 per day, section 9(4) is not applicable.

AI Summary

Reverse charge applicability: whether daily threshold is determined by time of supply or by notification's daily aggregation method.
The issue is whether the daily aggregate threshold in Notification No. 8/2017 is calculated by reference to the time of supply (date of payment under Section 13(3)) or by a standalone daily aggregation method prescribed in the notification. One view treats the aggregate as determined by time of supply-so a single payment in one day exceeding the threshold triggers reverse charge-while another view urges following the notification's explicit daily calculation methodology; commentators also note later amendments and temporal limits to the notification's applicability.