Services from unregistered person

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Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2017 Please advise any services from unregistered person comes under gst reverse charge or not

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 July 2017 Services from unregistered person comes under gst reverse charge.

Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2017 Sir please confirm all services or some specific services??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 July 2017 All services................................

Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2017 Thanks a lot sir for ur advise..can you please share the circular about this matter?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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25 July 2025 Under **GST**, services received from **unregistered persons** were **originally subject to Reverse Charge Mechanism (RCM)** under **Section 9(4)** of the CGST Act, 2017.

### ✅ Key Points:

1. **Section 9(4), CGST Act**:

> If a **registered person** receives **goods or services** from an **unregistered supplier**, then the **registered person** was liable to pay GST on reverse charge basis.

2. **However**, this provision has been **suspended**/**deferred** since **13 October 2017**.

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### 🔔 Current Status (as per your query dated 09 July 2017):

✔ **As of 09 July 2017**, **Section 9(4)** was **still in force**, so **yes**, RCM was applicable on all supplies (goods or services) received from unregistered suppliers by registered persons.

However, due to the **practical difficulties**, the government later **deferred** it.

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### 📜 Circulars/Notifications Regarding Suspension:

Here are the key notifications and circulars that followed:

* **Notification No. 8/2017 – Central Tax (Rate)** dated **28.06.2017**
→ Exempted intra-state supplies from unregistered persons up to ₹5,000 per day per recipient from RCM liability.

* **Notification No. 38/2017 – Central Tax (Rate)** dated **13.10.2017**
→ **RCM under Section 9(4) suspended** for all purchases from **unregistered persons**, effective **13 Oct 2017**.

* This suspension continued via multiple notifications and was later limited only to specific cases notified by the Government.

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### ✅ Conclusion:

* **On 9 July 2017**, RCM on purchases from unregistered persons was applicable (with a ₹5,000 per day exemption limit).
* **From 13 October 2017 onward**, it was suspended for general transactions.

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If you'd like, I can provide a direct link to the official notifications from the CBIC site or a summarized PDF for your records.

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