06 August 2019
Sir, We are receiving service from unregistered vendor as technical consultant . he has 6 month contract with us and he has contract of 12 lakh. Do we need to pay RCM on this. As per my view after amendment of CGST Act 2018 Sec 9(4) we don't need to pay RCM.
Please clarify my doubt
Amendment in Section 9(4) 4. In section 9 of the principal Act, for sub-section (4), the following sub-section shall be substituted, namely:–– “(4) 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.”.
06 August 2019
"specified / notified class of person / goods or services" - there is no clarity on this right. no further circular or notification has come under this right. please clarify
AMENDED PROVISIONS AND ITS EFFECT THEREOF – Vide the Central Goods and Service Tax (Amendment) Act, 2018 effective from 1st February, 2019, entire section 9 (4) of the CGST Act, 2017 was substituted. Now, let us understand what the substituted provisions of section 9 (4) says – ‘The Government may, on recommendations of the Council, by notification, specify the 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 tax on reverse charge basis as a 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’.
For example :- Govt vide notification No. 07/2019 dt 29 March 2019 notified PROMOTERS to pay tax under RCM
Similarly , it can notify any class of taxpayers to pay Tax on RCM
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