Supplies from unregistered persons exempted till 30 June 2018
CBEC vide Notification No. 10/2018 – Central Tax (Rate) dated 23rd March 2018 has notified that supplies of goods or services or both received by a registered person from any unregistered supplier shall be exempted till the date of 30th June 2018.
Section 9(4) of CGST Act provides for payment of tax on supplies from unregistered persons. Section 9(4) of CGST Act read as follows:
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.
Due to this provision trade was facing a lot of problems and thus to provide relief to the dealers and traders initially, Supplies from unregistered persons were exempted vide Notification No.8/2017-Central Tax (Rate) dated 28 June 2017, wherein such exemption was provided only for the supplies upto an amount of five thousand rupees in a day.
Lateron Notification No. 38/2017 – Central Tax (Rate) dated 13 October 2017, abolished the limit of five thousand rupees and supplies from unregistered persons were completely exempted. However, this notification provided the relief upto 31 March 2018 only.
Now vide Notification No. 10/2018 – Central Tax (Rate), supplies from unregistered persons have been exempted till 30 June 2018. Notification can be read as follows:
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