On 29th of January , 2019 CBIC issue notification no.01/2019-Central Tax (Rate) , Seeks to rescind notification No. 8/2017-Central Tax (Rate) dated 28.06.2017 in view of bringing into effect the amendments (regarding RCM on supplies by unregistered persons) in the GST Acts.
The Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby rescinds the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 8/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, vide number G.S.R. 680 (E), dated the 28th June, 2017, except as respects things done or omitted to be done before such rescission and this notification shall come into force with effect from the 1st day of February, 2019.
From, 01.02.2019 government has withdrawn the exemption given to all Registered supplier from RCM by withdrawing the notification no 08/2017 central tax rate. Due to this withdrawal Section 9(4) of CGST Act 2017 again become operational subject to condition and hence supply received from unregistered supplier will attract RCM provision without any limit which given in noti -8/2017 dt. 28.06.2017
Earlier Notification No.8/2017-Central Tax (Rate) dt. 28.06.2017 CBIC issued notification that exempts intra-State supplies of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the central tax leviable thereon under sub-section (4) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017): Provided that the said exemption shall not be applicable where the aggregate value of such supplies of goods or service or both received by a registered person from any or all the suppliers, who is or are not registered, exceeds five thousand rupees in a day shall applicable from 1st july, 2017.
Seeks to exempt payment of tax under section 9(4) of the CGST Act, 2017 till 31.03.2018 vide notification 38/2017-Central Tax (Rate) ,dt. 13-10-2017.
Seeks to exempt payment of tax under section 9(4) of the CGST Act, 2017 till 30.06.2018 , for the figures, letters and words “31st day of March, 2018”, the figures, letters and words “30th day of June, 2018” shall be substituted, Notification vide 10/2018-Central Tax (Rate) ,dt. 23-03-2018.
Seeks to exempt payment of tax under section 9(4) of the CGST Act, 2017 till 30.09.2018. vide notification no 12/2018-Central Tax (Rate) ,dt. 29-06-2018
The notification no 22/2018-Central Tax (Rate) ,dt. 06-08-2018, for the figures, letters and words “30th day of September, 2018”, the figures, letters and words “30th day of September, 2019” shall be substituted in Notification No 12/2018 dt.29-062018.
Before going ahead we much consider the Amendment Act, THE CENTRAL GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018 (NO. 31 OF 2018) dated 29th August, 2018.
The Amendment Act stated that
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.”
However only the class of Taxable Person and Class of supply notified under this section would alone come under RCM liability u/s 9(4),.Till date there is no such notification to this effect , till such notification issued, there is no liabilities at all u/s 9(4) under RCM and Tax payer not worried about the supply made from unregistered person.
That means we can conclude that CBIC shall required to issue notification for such class of registered persons and supply of specified categories for RCM under section 9(4) Supply received by registered person from unregistered person.