REVERSE CHARGE MECHANISM UNDER GST, Goods and Services Tax - GST

[MVK TAXAUDIT]

EARLIER REVERSE CHARGE MECHANISM WAS SUSPENDED TILL SEPTEMBER 2019 LATER , FEW SERVICES WERE LISTED UNDER REVERSE CHARGE MECHANISM. HOWEVER, IN CASE OF GOODS RCM APPLICABILITY IS NOT CLEAR. ADVICE WHETHER RCM IS APPLICABLE OR NOT IN THE FOLLOWING CASES :-

1. WHEN SILK SAREES ARE PURCHASED FROM UNREGISTERED DEALER ?

2. WHEN JOBWORK SUCH AS PROCEESING OF SILK SAREES LIKE DYEING COLOURS TO SILK SAREES, WATER PROOFING THE SAREES FROM UNREGISTERED DEALER?

Posts / Replies

[KASTURI SETHI]

Section 9(4) of CGST Act has been replaced by GST (Amendment) Act, 2018 w.e.f. 1.2.19. therefore notification granting exemption/deferment till 30.9.19 has become irrelevant after 31.1.19.

1. Silk yarn is under RCM and Silk Saree. See Notification 4/17-CT(Rate).

2. Job work from unregistered person will attract GST @ 18 %.

Also go through the following :

Job work - Scope of Notification No. 11/2017-C.T. (Rate) under Heading 9988

Circular No. 126/45/2019-GST, dated 22-11-2019