The suspension of RCM would now be valid till September 30, 2019, the Central Board of Indirect Taxes and Customs (CBIC) has announced.
NEW DELHI, In a business-friendly move, the govt has extended the suspension of RCM on purchase of services or goods by registered dealers from unregistered dealers within the state till September 30, 2019.
The suspension was previously valid till September 30 2018 of current year. But for now, suspension of RCM has been extended by one year. The suspension would now be valid till September 30, 2019, the Central Board of Indirect Taxes and Customs (CBIC) has announced.
Previously suspension of RCM already extended twice. This suspension was earlier available till March 31, 2018, and then extended to June 2018 and then to September 30, 2018. It has now been extended to September 30, 2019.
According to current rule, any registered dealer can purchase goods or services from any unregistered dealers without using GST Number out GST under reverse charge till September 30 next year, tax experts said.
This step will bring significant compliance relief to large businesses and encourage them to buy from unregistered dealers, they added.
M S Mani, Partner, Deloitte India, said the decision to defer reverse charge on transactions with unregistered dealers to September 2019 would reduce the compliance burden for businesses. It could also lead to lower collections as it was a key anti-evasion measure within the original GST architecture, he said.
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