Rescinds notification No. 8/2017-Central Tax (Rate) dated 28.06.2017 in view of bringing into effect the amendments (regarding RCM on supplies by unregistered persons) in the GST Acts. W.e.f 01.02.2019, section 9(4) to be applicable only for specified class of registered persons; Original section omitted for trade facilitation and substituted with amended section. The class of persons to whom section 9(4) applicable yet to be notified

Seeks to rescind notification No. 8/2017-Central Tax (Rate) dated 28.06.2017 in view of bringing into effect the amendments (regarding RCM on supplies by unregistered persons) in the GST Acts vide Notification No. 01/2019 – Central Tax (Rate) Dated 29th January, 2019.

Government of India
Ministry of Finance
(Department of Revenue)
[Central Board of Indirect Taxes and Customs]

Notification No. 01/2019 – Central Tax (Rate)

New Delhi, the 29th January, 2019

G.S.R. 70(E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby rescinds the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 8/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, vide number G.S.R. 680 (E), dated the 28th June, 2017, except as respects things done or omitted to be done before such rescission.

2. This notification shall come into force with effect from the 1st day of February, 2019.

[F.No.20/06/16/2018-GST (Pt. II)]

(Gunjan Kumar Verma)

Under Secretary to the Government of India

Note: – The principal notification No. 8/2017- Central Tax (Rate), dated the 28th June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 680 (E), dated the 28th June, 2017 and was last amended vide notification No. 22/2018-Central Tax (Rate), dated the 6th August, 2018, published vide number G.S.R. 743 (E), dated the 6th August, 2018.

More Under Goods and Services Tax

15 Comments

  1. Sanchar says:

    Thus the RCM on purchases of Cashew from unregistered dealers in still remaining or have been withdrawn w.e.f 01.02.2019. Please help…!!!

    1. Umaanshu Jangid says:

      in case of residential property, no need to pay GST under RCM but in case of commercial property, it is applicable. But it is yet to be clarified by the government with regard to class of registered persons and specified categories of goods or services under section 9(4) of CGST act.
      Hence you don’t need to pay GST on rent under RCM w.e.f. 01.02.2019

  2. Dr A Subrahmanyam says:

    Notification 01/2019 – Central Tax is effective from 1st February 2019.  Accordingly, Notfn 08/2017 dt. 28th June 2017 stands rescinded.  The effect is that GST is not payable on Reverse Charge Basis.  To elucidate further,  Section 9(3) of CGST Act is the “Authority”  and Section 9(4) is the “Charging Section.”   Accordingly, the Government has the power to impose RCM but for now and precisely from 1st February, no Tax is payable for URD Purchases.

  3. Dr A SUBRAHMANYAM says:

    Section 9(3) of CGST Act is Empowerment and Section 9(4) of CGST Act is the “Charging Section.” Notification issued under Sec 9(4), i.e., 08/2017, is now rescinded. Accordingly, no tax is payable under the RCM

  4. JITENDER KUMAR RANKA says:

    Mere reading of Notification No. 01/2019–Central Tax (Rate), Any one can conclude oh, RCM on purchase from unregistered suppliers shall have to be paid by registered dealer who purchases.

    But it is not so, Why? Read it:
    The notification of exemption is rescinded as it is not needed now since section 9(4) it self has been amended to the effect that there would be no RCM for purchase of goods/services unless government wants to levy by notification. This has been effected vide CGST amendment Act 2018 (31 of 2018) which is effective from 1st Feb 2019

    RCM for specific goods/services under Section 9(3) remains.

    While in two meetings before last it had been concluded by GST council to remove RCM under section 9(4).

    1. Lokesh M says:

      NOT APPLICABLE AT ALL.
      It means RCM will be withdrawn w.e.f. 01.02.2019 on Procurement’s from unregistered persons (Permanently withdrawn)

Leave a Comment

Your email address will not be published. Required fields are marked *