Section 9(4) of CGST Act : Proposed Amendment
As per Draft Proposal for Amendments GST Laws released on 09.07.2018 following are the proposed amendment in section 9(4) of CGST act 2017
Amendments as shown in Red and Strikethrough
Levy and Collection
9 (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 recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
9 (4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of taxable goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such goods or services 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.
Rationale/Remarks
Section 9 (4), which mandates that all registered persons shall pay the tax on reverse charge
basis on purchases made from unregistered persons, is presently under suspension. This subsection
is being omitted for trade facilitation.
Instead, it is proposed to take an enabling power for the Government to notify a class of registered persons who would be liable to pay tax on reverse charge basis in case of receipt of
goods from an unregistered supplier