Whether RCM applicable from 1st Feb 2019 | Confusion on Applicability of RCM

Whether RCM applicable from 1st Feb 2019 | Confusion on Applicability of RCM

After the release of notification 01/2019 dated 29.01.19 cetral tax (rate) which seeks to rescind section 9(4) notification dated 28.06.17 (notification no. 08/2017), there is a lot of confusion created as to whether RCM will be applicable from 1st February 2019 or not The reason behind the confusion arising in minds of people is the CGST(Rate) Notification no. 01/2019 dated 29th January 2019 which states that it which talks about rescinding the section 9(4) notification (notification no. 08/2017) dated 28th June 2017 in order to bring into effect the amendments regarding RCM on supplies by unregistered persons in the GST Acts and CGST Notification no. 02/2019 dated 29th January 2019 which states that the CGST (Amendment) Act, 2018 [except for section 8(b), 17, 18, 20(a), 28(b)(i) and 28(c)(i)] which was approved on 29th August 2018 will be effective from 1st February 2019. The important aspect is to look notification 02/2019 dated 29.01.2019 which refers the applicability of CGST (AMMENDMENT) ACT,2018 w.e.f 01.02.2019. As per new section 9(4), RCM for procurement from unregistered dealers is applicable only to specified persons and for specified categories of goods and services. However, there is no specified categories prescribed yet by the government. Conclusion: Taking the effect of Rescinding this notification does not results in RCM liability till the notification for prescribing the specified category is issued under section 9(4). Provisions of RCM u/s 9(4) will be applicable ONLY after the Government will notify the specific category of registered persons on whom it will be applicable and the specific category of supply of goods or services on which it intends to make it applicable