When will 9(4) get applicable

Reply— 

Provision of section 9(4) of CGST Act, i.e. reverse charge mechanism in case of purchases made from unregistered person was Operative upto 12.10.2017. As per notification No. 38/2017 CT (Rate) dated 13-10-2017, all supplies from unregistered person are exempted without any threshold limit. The subsequent Notifications no. 22/2018-Central Tax (Rate) dated 06-08-2018 has extended the exemption from tax liable under the reverse charge basis under section 9(4) till 30-09 2019.

And as per CGST (Amendment ) Act, 2018, provision of section 9(4) has been amended and now reverse charge is not applicable on all inward supplies received from a unregistered supplier.

There are some specific services under Real estate only on which provision of RCM u/s 9(4) is applicable. Refer notification No.07/2019-Central Tax (Rate) Dated 29th March, 2019.