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GST RCM unregistered person Deferred till 30.09.2019

Manoj (Student) (260 Points)

02 October 2019

RCM on purchase from unregistered person Deferred till 30.09.2019.

Now, Has any notification come for extend or we have to RCM from 1.10.2019.

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10 Replies

Swati (Chartered Accountant) (157 Points)
Replied 02 October 2019

This RCM u/s 9(4) has been amended w.e.f 1.02.2019 by CGST(Amendment) Act,2018. No concept of deferment prevails now.
As per amended Section 9(4)/5(4), the Govt. may specify a class of registered persons who shall pay tax under RCM for specified supply of goods or services or both received from an unregistered person.

S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 02 October 2019

Originally posted by : Swati
	This RCM u/s 9(4) has been amended w.e.f 1.02.2019 by CGST(Amendment) Act,2018. No concept of deferment prevails now.As per amended Section 9(4)/5(4), the Govt. may specify a class of registered persons who shall pay tax under RCM for specified supply of goods or services or both received from an unregistered person.

Can You give the specified supplies

Swati (Chartered Accountant) (157 Points)
Replied 02 October 2019

Various supplies in Real estate sector has been notified for this.

Anshuman Basu (account -GST) (1549 Points)
Replied 02 October 2019

Can we get specified supply

Shivam RC (Student) (23683 Points)
Replied 02 October 2019

Agree with Swati Ma'am's explanation...

Section 9(4) of the CGST Act 2017 has been amended by CGST (Amendment ) Act 2018. Now RCM on Purchase from Un-Registered Dealer will be applicable only of purchase of SPECIFIED GOODS and to specified persons.

For Example : REAL ESTATE Sector is a specified sector for Section 9(4) vide Notification. If Builders purchase CEMENT ( a specified Goods ) from an Unregistered Dealer, then the Recipient ( Builder ) has to pay GST @ 28% on RCM Basis.
Many more goods has been specified.

Understood Sir...

Warm Regards.

2 Like

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 02 October 2019

In Addition to above procurement of Captial Asset by Builder from URD is under RCM .

In terms of Notifications 7/2019 CT(r) (Read with Notification 3/2019 CT(r))

promoter/developer shall procure 80% of Inputs (Goods) , jnput services from Registered person & if fails to do so then the shortfall amount needs to paid on RCM.

Note : Capital goods procurement must be 100℅ from Registerd person.

Piali Roy Chowdhury (605 Points)
Replied 02 October 2019

Only Real Estate Sector has been specified so far to comply with the Provision of Section 9(4) ???

Shivam RC (Student) (23683 Points)
Replied 02 October 2019

Yes Piali Roy Chowdhury Ma'am...

So far only Real Estate Sector has been specified

1 Like

makkhan sharma (203 Points)
Replied 03 October 2019

Is direct and indirect expenses of trading ,profit and loss account is chargeable RCM ? IF some is chargeable please explain which type of expenses ?

Swati (Chartered Accountant) (157 Points)
Replied 03 October 2019

Some RCM notified services are-
1) Freight paid to GTA (with some conditions)
2) Legal fees
3) Fees to Arbitral Tribunal
4) Sponsorship fees
5) Expenses paid to CG/SG/UT/Local Authority except some.

Likewise many supplies are notified in RCM under section 9(3).
Also Real Estate sector related in 9(4).