Notification No. 01/2019 – Integrated Tax (Rate) Explained

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Notification No. 01/2019 – Integrated Tax (Rate): Seeks to rescind notification No. 32/2017 - Integrated Tax (Rate) dated 13.10.2017 in view of bringing into effect the amendments (regarding RCM on supplies by unregistered persons) in the GST Acts

GST: [To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby rescinds the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 32/2017-Integrated Tax (Rate), dated the 13^th October, 2017, published in the Gazette of India, Extraordinary, vide number G.S.R. 1263 (E), dated the 13^th October, 2017, except as respects things done or omitted to be done before such rescission.

2. This notification shall come into force with effect from the 1^st day of February, 2019.

(Gunjan Kumar Verma)
Under Secretary to the
Government of India

Note: - The principal notification No. 32/2017- Integrated Tax (Rate), dated the 13^th October, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1263(E), dated the 13^th October, 2017 and was last amended vide notification No. 23/2018-Integrated Tax (Rate), dated the 6^th August, 2018, published vide number G.S.R. 744 (E), dated the 6^th August, 2018.

📚 Frequently Asked Questions (FAQs): Notification No. 01/2019 - Integrated Tax (Rate)

Q1: What is the main purpose of Notification No. 01/2019 – Integrated Tax (Rate)?

Answer:
The notification rescinds Notification No. 32/2017, thereby removing IGST reverse charge liability on supplies received from unregistered persons, except where specifically notified.

Q2: From which date is this notification applicable?

Answer:
It is applicable from 1st February 2019, as clearly mentioned in the notification.

Q3: Does this mean RCM on unregistered suppliers is fully removed under IGST?

Answer:
Yes, RCM under Section 5(4) of IGST Act is no longer generally applicable. It applies only to notified cases, similar to amended CGST provisions.

Q4: Is GST paid earlier under Notification 32/2017 refundable?

Answer:
No. The rescission applies prospectively. Transactions completed before 1 February 2019 remain valid.

Q5: How does this affect inter-State service transactions?

Answer:
Registered persons are not required to pay IGST under RCM for inter-State supplies from unregistered suppliers, unless specifically notified.

Q6: What section empowers the government to issue this notification?

Answer:
It is issued under Section 6(1) of the IGST Act, 2017, which allows the government to notify or withdraw IGST provisions.

Q7: Is GST registration still mandatory for inter-State suppliers?

Answer:
Yes. This notification does not remove registration requirements under Section 24 of CGST Act.
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Q8: How does this benefit MSMEs and startups?

Answer:
It reduces:
RCM calculations
Monthly compliance load
Cash flow blockage
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Q9: Does this notification impact GST returns?

Answer:
Yes. RCM entries for unregistered suppliers should not be reported post 1 Feb 2019.
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Q10: Are there any exceptions to this relief?

Answer:
Yes. If the government specifically notifies certain services or goods, RCM may still apply.

Q11: How does this align with CGST amendments?

Answer:
It aligns IGST with Section 9(4) of CGST Act, which was amended to restrict RCM only to notified cases.

Q12: Does this affect imports of services?

Answer:
No. Import of services under Section 5(3) of IGST Act continues to attract RCM.

Q13: What if I made a mistake in past GST returns?

Answer:
You may need GST return revision or reconciliation.
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Q14: Does this notification affect valuation or place of supply rules?

Answer:
No. It strictly deals with RCM applicability, not valuation or place of supply.

Q15: Is this notification still relevant today?

Answer:
Yes. It forms the foundation for current RCM framework under IGST, unless overridden by later notifications.

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