9911796707
TMI BlogAnnexure 9: Levy of tax on Reverse Charge Mechanism (RCM)X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. [sec. 9(3) of the SGST/CGST Act/sec. 5(3) of the IGST Act]. Notifications issued: Sl. No. Subject Notification No. & date 1. Consolidated list of goods on which tax is payable under RCM under section 9(3) of the SGST Act, 2017. CGST Notification No. 04/2017- CT(Rate) dt. 28.06.2017 2. Consolidated list of services on which tax is payable under RCM under section 9(3) of the SGST Act, 2017 CGST Notification No. 13/2017- CT(Rate) dt. 28.06.2017 3. Notification for RCM on goods under section 5(3) of the IGST Act, 2017 4/2017-ITR dated 28.06.2017 as amended time to time. 6. Notification for RCM on services under section 5(3) of the IGST Act, 2017 10/2017-ITR dated 28.06.2017 as amended time to time. c. Supplies received from unregistered person under sec 9(4): The provision of section 9(4) of CGST/SGST Act /5(4) of IGST Act has been amended w.e.f. 01.02.2019. Before this amendment the aforesaid provision upto 31.01.2019 was as follows - "The State tax/central tax/integrated tax in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 28.06.2017 have been finally rescinded w.e.f. 01.02.2019 vide CGST Notification No. 01/2019- CT(Rate) dated 29.01.2019. d. Supplies received from unregistered person under amended provisions of sec 9(4): Finally, the provision is amended w.e.f. 01.02.2019 as below: "Govt. may specify by notification a class of Registered recipients who shall pay tax on RCM on supply received from an unregistered supplier. CGST Notification No. 07/2019-CT(Rate) dated 29.03.2019 have been issued w.e.f. 01.04.2019 to specify that subject to certain conditions a promoter is liable to pay tax under section 9(4). e. Compulsory Liability of Registration for a person liable to pay tax on RCM: As per the provisions of section 24(iii) of the SGST/CGST Act, persons who are required to pay tax under reverse charge are liable to be registered without any threshold. Hence if any person receives inward supply of goods and/or services for the purpose of business on which tax is payable on RCM, he is liable to be registered without any threshold. f. Tax payable by e-commerce operator [Sec 9(5)]: The Government on the recommendation of the GST Council may notify categories of services wherein the pers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R services provided by a person in a non-taxable territory received by a non-taxable online recipient) from a company in the USA. Is there any liability to pay tax under GST by either of the parties? If the answer is 'Yes', who is liable to pay tax? Yes. Notification No. 10/2017-ITR dated 28.06.2017 issued under section 5(3) of the IGST Act stipulates that the recipient registered person is liable to pay tax on RCM. Note: In case of OIDAR services provided by a person in a non-taxable territory received by a non-taxable online recipient, the supplier of services located in a non-taxable territory is liable for paying integrated tax. 4 A Panchayat Samithi sells old and used goods to a registered person. In this case who is liable to pay tax ? If such sale would have been effected on say, 01.11.2017 who is liable to pay tax? If the recipient of the supply is a registered person, then such recipient was liable to pay tax on RCM. (Entry No. 6 of CGST Notification No. 04/2017- CT(Rate), dated 28.06.2017 inserted by CGST Notification No. 36/2017-CT(Rate) w.e.f. 13.10.2017). However, if the said supply is made to an unregistered person, the Panchayat Samithi itself has to charge ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icence fees paid may attract GST. (iii) Where the Court Receiver collects rents or profits from occupants of properties under receivership, the same will be liable to payment of GST. (iv) Consideration received for assignment, licence or permitted use of intellectual property. In such cases, GST may be collected from the Court Receiver as a representative assessee under Section 92 and as such the Court Receiver may be required to obtain registration under the relevant GST laws. [Para. 84 & 85] However, if the Court Receiver is deputed to make an inventory of goods, collect rents with respect to immovable property in dispute or where the property has to be sealed, or the Receiver is appointed to call bids for letting out the premises on leave and licence, the fees or charges of the Court Receiver are exempt. [Para. 86] Q.2. Whether GST is liable to be paid on royalty or payments under a different head paid by a defendant (or in a given case by the plaintiff or third party) to the Court Receiver in respect of properties over which a Court Receiver has been appointed? A.2. The answer is in the affirmative, subject to the payment towards royalty or the payment to the Court Receiv ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
