Relaxation under GST RCM

  • Forty-six
    amendments are proposed under the GST law. 
  • Amendment on Reverse Charge
    Mechanism (RCM) would be of consequence to NGO.
  • As
    per Section 9(4) of CGST Act 2017, any supply of goods or service from an
    Unregistered Supplier to a Registered Supplier requires
    the Registered Supplier to Pay GST to the Government in the form of RCM. 
  • Section
    9(4) which has been deferred till 30-09-2018 is likely to be repealed and
    substituted by the new section 9(4) as: 
    The
    Government may, on the recommendations of the Council, by notification, specify
    a class of registered persons who shall, in respect of taxable goods or
    services or both received from an unregistered supplier, pay the tax on reverse
    charge basis as the recipient of such goods or services or both, and all the
    provisions of this Act shall apply to such recipient as if he is the person
    liable for paying the tax in relation to the supply of such goods or services
    or both
    .”

RCM
is sought to be applied only to “class of registered persons” and not all the
registered persons.
The
class of registered persons may be:
a)
persons receiving goods or services falling under specific headings
b)
persons engaged in specified outward supplies
c)
Persons having inward supplies more than specified percentage

Conclusion:
  • Don’t worry about
    payment of GST under Reverse Charge Mechanism till end of September
  • Hope and pray
    charitable institutions will not fall under “class of registered persons”

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