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Is rcm applicable on brokerage paid to unregistered real estate agent?

08 September 2018

Is RCM applicable on brokerage paid by a registered dealer to unregistered real estate agent? If yes, then at what rate should the GST be paid?

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11 Replies

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 08 September 2018

Reverse Charge Mechanism (RCM) under GST further Deferred/ Suspended till 30 Sept. 2019, notifies CBIC

The CBIC has notified that the provisions relating to Reverse Charge Mechanism (RCM) under GST, i.e. u/s 9(4) of the CGST Act, 2017, u/s 5(4) of the IGST Act, 2017 and u/s 7(4) of the UTGST Act, 2017 have been further Deferred/ Suspended by Govt. by 1 year, upto 30 Sept. 2019, from 30 Sept. 2018. Earlier, the CBEC/ CBIC had notified on 13 Oct. 2017/ 23 March 2018/ 29 June 2018 that implementation of RCM under GST has been deferred upto 31 March 2018/ 30 June 2018/ 30 Sept. 2018 respectively.

No RCM now

1 Like

Shivam RC (Student) (23683 Points)
Replied 08 September 2018

SECTION 9(4) i.e RCM on Purchase from Unregistered Dealer ( URD ) is suspended till 30.09.2019.

So, in your case, you are not required to pay GST under RCM basis on brokerage paid since it has been deferred.

1 Like

Shantilal Satra (Trainee) (55 Points)
Replied 08 September 2018

Thanks a lot for your reply. As per your reply is RCM deferred in all cases such as transportation, legal expenses etc

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 08 September 2018

No transportation is under 9(3)

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 08 September 2018

Only on services under 9(3) RCM is apllicable , ie GTA, Advocates

Shivam RC (Student) (23683 Points)
Replied 08 September 2018

No Shantilal Sir...

Only SECTION 9(4) i.e. Purchase from Unregistered Dealer is suspended till 30.09.2019.

SECTION 9(3) i.e. REVERSE CHARGE MECHANISM on Notified Cases such as Legal Services, GTA etc is in full force. This particular SECTION is not deferred.

2 Like

Shantilal Satra (Trainee) (55 Points)
Replied 09 September 2018

Thank you all for the clarification

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 09 September 2018

You are welcome

Vinod Babu (24191 Points)
Replied 09 September 2018

Good explanation........

sonu yadav (2 Points)
Replied 25 July 2019

Dear All

Whether in the month of April 2018, we will have to pay Rcm while paying an unregistered broker

Pinky Patel (Practising Financial Advisor) (24 Points)
Replied 18 July 2020

Dear Team,

Kindly advise on this:

"Is RCM applicable on brokerage paid by a registered dealer to unregistered real estate agent? If yes, then at what rate should the GST be paid?

Is it payable now as on June 2020?