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TMI Blogreverse charge for jewellersX X X X Extracts X X X X X X X X Extracts X X X X ..... reverse charge for jewellers X X X X Extracts X X X X X X X X Extracts X X X X ..... once the shop owner pay GST under reverse charge, is he eligible to avail input tax credit of the same? And if YES under which provisions? And if NO under which provisions? Reply By Shilpi Jain: The Reply: Presently, under which provision does this liability under RCM arise? Reply By Kaustubh Karandikar: The Reply: Shilpi ji i am also not getting the relevant provisions. Notification 8/2017 wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s valid only up to September'2019. Under this situation, when a un - registered person sells jewellery to shop owner, who is liable to pay GST? Reply By KASTURI SETHI: The Reply: Original Notification No.8/17-CT(R) dated 28.6.17 (as amended vide Notification No.38/17-CT(R), 10/18-CT (R), 12/18-CT(R), 22/18-CT(R) has been rescinded vide Notification No. 1/2019-C.T. (Rate), dated 29-1-2019 (ef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fective from 1.2.2019). W.e.f.1.2.19 Section 9(4) of CGST Act and Section 5(4) of IGST Act has been amended vide CGST (Amendment) Act, 2018 and only specified categories of goods and services received from an unregistered suppler were brought under RCM. Old and used jewellery sold by an unregistered person to the registered person (jeweller) is not under specified category for the purpose of RC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M. Reply By Kaustubh Karandikar: The Reply: Thanks kasturi ji for your advice. Can we conclude saying no one is liable to pay GST in this transaction? Reply By KASTURI SETHI: The Reply: Dear Sir, It is relevant to peruse Press Release No.78/17 dated 13.7.17 Pl. Compare Section 9(4) of CGST Act After 1.2.19 and Prior to 1.2.1( Section 9(4) of CGST ACT (W.e.f. 1.2.19) [(4) The Government may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person liable for paying the tax in relation to such supply of goods or services or both.] SECTION 9(4) BEFORE 1.2.19 "(4) The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent as if he is the person liable for paying the tax in relation to the supply of such goods or services or both." Jewellery is not under Specified category after 1.2.19 but as per Press Release it is under RCM. Reply By KASTURI SETHI: The Reply: Any press release has no statutory force until and unless it is backed by notification/amendment in the Act. If we read Section 9(4) (before and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after 1.2.19) along with exemption notifications, supply by unregistered person to registered person has been switched from exempted to non-leviability of GST by way of non-inclusion in specified category w.e.f. 1.2.19. Hence no RCM. Press release mentions the term, 'gold ornaments.'. Gold ornaments are covered in the term,'Jewellery' Reply By Padmanathan Kollengode: The Reply: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kaustubh sir, None is liable to pay on this transaction of purchase of gold ornament from unregistered person by jewellery shop. Kasturi Sir, The press release was issued before substitution of Section 9(4). Now only promoter has to pay GST under RCM on construction of RREP/REP if his inward supplies from RP fall below 20% threshold limit. So only a developer within the meaning of Not No 3/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9-CTR is the "specified person". Reply By Kaustubh Karandikar: The Reply: Thanks Kasturi ji and Padmanathen ji for your elaborate views. Reply By KASTURI SETHI: The Reply: Sh.Padmanathan Kollengode Ji, I agree with you. I add that after 1.2.19, cement ( HSN 2523) was brought under RCM vide Notification No. 24/19-CT(R) dated 30.9.2019 amending Notification No.7/19-CT(R) dated 29.3.19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (effective from 1.4.19). Section 9(4) of CGST Act refers. Reply By ROHIT GOEL: The Reply: Sir, I believe press release dated 13.7.2017 has also clarified that sale of old jewellery by a consumer/unregistered person to a jeweller does not attract GST as it is not in furtherance of business of the seller. Therefore, when transaction is not classified as supply, there remains no question of RCM o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r forward charge. Relevant press release is as follows:
https://cbic-gst.gov.in/pdf/press-release/Press-Release-Reverse-Charge.pdf
Further, if the unregistered person is someone involved in business of jewellery, even in such case RCM u/s 9 would not apply as clarified by the experts. Hope this is helpful.
Regards,
Dhruv Goel X X X X Extracts X X X X X X X X Extracts X X X X
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