Important Keyword: GST reverse charge exemption, Notification 5/2017 GST, GST RCM registration rules India, GST Section 23 explained, GST reverse charge India,
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Table of Contents
[F. No. 349/72/2017-GST]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF EXCISE AND CUSTOMS
New Delhi, the 19th June, 2017
29 Jyaistha, 1939 Saka
Notification No. 05/2017 – Central Tax: Seeks to exempt persons only engaged in making taxable supplies, total tax on which is liable to be paid on reverse charge basis.
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 (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government hereby specifies the persons who are only engaged in making supplies of taxable goods or services or both, the total tax on which is liable to be paid on reverse charge basis by the recipient of such goods or services or both under sub-section (3) of section 9 of the said Act as the category of persons exempted from obtaining registration under the aforesaid Act.
2. This notification shall come into force on the 22nd day of June, 2017.
(Dr. Sree Parvathy. S.L.)
Under Secretary to the
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 05/2017 – Central Tax
Q1: What is Notification 5/2017?
It gives GST registration exemption.
Applies to suppliers making only RCM-based supplies.
Q2: What is reverse charge?
Tax paid by recipient.
Instead of supplier.
Q3: Do I need GST registration under RCM?
No, if only RCM supplies.
Q4: What if I make one normal supply?
Registration required.
Q5: Which services fall under RCM?
Legal, GTA, etc.
Q6: Is this exemption automatic?
Yes.
If conditions are satisfied.
Q7: Can I take voluntary registration?
Yes.
Even if exempt.
Q8: Does recipient need to pay tax?
Yes.
Under RCM provisions.
Q9: Is invoice required?
Yes.
But GST is not charged.
Q10: Is ITC available?
Recipient can claim ITC.
Q11: Is this still relevant?
Yes.
RCM still applicable in many cases.
Q12: Should I consult expert?
Recommended.
https://finodha.in/gst-compliance/
Q13: What section covers this?
Section 23(2).
Q14: Is threshold applicable?
Not required for this exemption.
Download PDF: Notification No. 05/2017 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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