Central Board of Indirect Taxes & Customs (CBIC) has issued Notification No. 01/2019- Central Tax (Rate) dated 29th January, 2019, to rescind Notification No. 8/2017- Central Tax (Rate) dated 28th June, 2017, last amended vide notification No.22/2018-Central Tax (Rate), dated the 6th August, 2018 which defers the payment of central tax on reverse charge basis by the registered person for intra-state supplies received from unregistered person.
As per substituted section 9 (4) of the CGST(Amendment) Act, 2018, Government will 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 requires to pay the tax on reverse charge basis as the recipient of such supply of goods or services or both.
Similarly, CBIC has issued Notification No. 01/2019 – Integrated Tax (Rate) dated 29th January, 2019 to rescind Notification No. 32/2017 – Integrated Tax (Rate) dated 13th October, 2017, last amended vide notification No. 23/2018-Integrated Tax (Rate), dated the 6th August, 2018 which defers the payment of integrated tax on reverse charge basis by the registered person for inter-state supplies received from unregistered person.
As per substituted section 5 (4) of the IGST (Amendment) Act, 2018, Government will 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 requires to pay the tax on reverse charge basis as the recipient of such supply of goods or services or both.
The notification shall come into force from 1st day of February, 2019.
Note: The list of specified goods and services supplied by unregistered person to a specified registered person on which taxes to be paid on reverse charge basis is yet to be notified.
Source: Central Board of Indirect Taxes & Customs
