on RCM

Refer Below Notification

Notification No. 13/2017- Central Tax (Rate)

Refer notification no.13/2017-Central Tax (Rate) as amended by notification no. 29/2018-Central Tax (Rate) dated 31st December 2018.

The reverse charge mechanism is applicable under 2 provisions: Sec 9(3) & 9(4).

For procurement from unregistered dealers, 9(4) [ IGST 5(4)] is applicable upto 13th October 2017. This was suspended further. However for the past i.e. b/n 1st July to 12th October there would be a liability. Once this is paid then eligible credit ( most would be eligible) could be availed. At this point of time- the interest would be a cost. If this demand is made at a later date interest for several years would have to be paid. 

Procurement fo services from specified persons ( GTA, Outside India, Advocate, Sponsorship, Govt etc.) fall under Sec 9(3) which was and continues to be liable. Again credit is available upto 31.3.2019 for such payments if eligible.