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Section 9(4) reverse charge

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Ajnas

Student

570 Points Posted on 22 June 2020

in present section 9(4) reverse charge is applicable on which area?

Replies (3)

Quick Summary

This discussion clarifies the application of Section 9(4) reverse charge, specifically for promoters and developers. It highlights that RCM applies when goods or services are procured from unregistered persons. There are specific thresholds: 80% of input goods and services (excluding capital goods and cement) must be from registered persons, with any shortfall subject to RCM. Capital goods and cement must be 100% procured from registered dealers, with shortfalls also under RCM. The previous rule of RCM on purchases exceeding £5,000 from unregistered persons has been removed.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 23 June 2020

As per Notification 7/2019 CT (R)
Promotors/Developer availing Goods & Service from Unregistered Person is under RCM .
The 80% procurement of Input (Goods) ,Input Services other than capital goods & cement shall be from registered person & any short fall need to be paid by Promotor/Developer under RCM.

Note : Capital Goods & cement must be procured 100% from Registered dealer , any short fall need be paid under RCM.
procurement of 100% cement is effective from 1/10/2019 vide Notification 24/2019 CT (r)