What is the difference between Section 9(3) and Section 9(4) under GST law?

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Quick Summary

Section 9(3) of GST applies Reverse Charge Mechanism on specifically notified goods and services like advocates and GTA services. Section 9(4) applies RCM on purchases made by registered persons from unregistered suppliers.

Guest

Guest (Querist)

12 August 2017 What is the difference between Section 9(3) and Section 9(4) under GST law?

Please explain the difference and each section definition

CA. Vinodh Kothari

CA. Vinodh Kothari (Expert)
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12 August 2017 9(3) RCM on notified list of goods and services applicable even if dealer is unregistered

9(4) RCM applicable on Inward supplies from unregistered dealer applicable only for registered dealer

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CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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12 August 2017 Both section 9(3) and 9(4) cover cases where tax liability is to be discharged under reverse charge the only difference is as under:

- Under section 9(3) few goods and services are specifically notified by way of notification in which case tax is to be paid under reverse charge like in case of advocates, Goods transport agency etc.
and
- Under 9(4) if supplies are received from unregistered dealer then tax is to be paid in reverse charges.

Prajjwal

Prajjwal (Expert)
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23 June 2018 Section 9(3) and 9(4) of the GST Act, covers cases where Reverse Charge Mechanism would be applicable.

However, Section 9(3) covers goods which are specified (explicitly covered in the list) for the purpose of reverse charge under GST

Please note the applicability of section 9(3) has been deferred till 30 June 2018 as per the latest notification available on the GST website.

Section 9 (4) - makes reverse charge applicable in all cases wherever goods / services are supplied from Unregistered Dealer to a registered dealer.

Refer Notification attached: https://www.caclubindia.com/share_files/gst-notification-no-4-2017-73578.asp

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