Big Relief – No Reverse Charge On Purchases from Unregistered Dealers w.e.f 13th October, 2017 till 31.3.2017

No Reverse Charge On Purchases from Unregistered Dealers w.e.f  13^th October, 2017 till 31.3.2018

Dear Readers,

After the GST Council’s decision of rationalizing the GST Reverse Charge in its last meeting we were all awaiting the Relevant Notifications. Today i.e. 13^th October, 2017 the Notifications are released as per details hereunder:-

No. 38/2017 – Dated: 13-10-2017 – CGST Rate à Under CGST

No. 32/2017 – Dated: 13-10-2017 – IGST Rate à Under IGST

No. 38/2017 – Dated: 13-10-2017 – UTGST Rate à Under UTGST

Pursuant to above notifications, reverse charge has been suspended till 31.3.2018 w.e.f 13.10.2017 i.e. the date of Relevant Notifications.

It is Important to Note that notifications are suspending the Reverse Charge Provisions only pursuant to Section 9(4) of the CGST Act, 2017, Section 5(4) of the IGST Act, 2017 & Section 7(4) of the UTGST Act, 2017 respectively. Hence all cases where the Liability to

Pay Reverse Charge was casted on Registered Dealers where the Inward Supply was from Unregistered Dealers shall only stand exempted for such Registered Dealers. Other cases of Reverse Charge i.e. Notified Categories viz GTA etc or E-Commerce Operator’s RCM shall still Continue.

Undoubtedly, A BIG RELIEF for SMALL Traders & Welcome reduction in Compliances.

Regards,

CA Ankit Gulgulia (Jain)

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