Important Keyword: GST TDS deductor exemption, notification 09/2017 CGST, reverse charge exemption GST, unregistered supplier GST India,
Words: 641 Read time: 3 minutes.
Table of Contents
[F.No.354/117/2017-TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 28th June, 2017
Notification No. 09/2017 - Central Tax (Rate): Exempting supplies to a TDS diductor by a supplier, who is not registered, under section 11 (1)
GST: [TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council,
hereby exempts intra-State supplies of goods or services or both received by a diductor under section 51 of the said Act, from any supplier, who is not registered, from the whole of the central tax leviable thereon under sub-section (4) of section 9 of the said Act, subject to the condition that the diductor is not liable to be registered otherwise than under sub-clause (vi) of section 24 of the said Act.
2. This notification shall come into force with effect from the 1st day of July, 2017.
(Mohit Tewari)
Under Secretary to the
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 09/2017 – Central Tax (Rate)
Q1: What is Notification 09/2017 GST?
Answer: It provides exemption from GST under reverse charge.
It applies when unregistered suppliers supply to TDS deductors.
Q2: Does GST apply on unregistered suppliers to government?
Answer: Generally no (in this case).
This notification exempts such transactions under RCM.
Q3: Who is a TDS deductor in GST?
Answer: Government entities and notified bodies.
They deduct TDS under Section 51.
Q4: Is reverse charge applicable here?
Answer: No.
Notification removes RCM liability in this scenario.
Q5: Is this applicable to registered suppliers?
Answer: No.
If supplier is registered, GST applies normally.
Q6: What is Section 9(4)?
Answer: It deals with reverse charge on unregistered supplies.
This notification exempts its application in specific cases.
Q7: Does this apply to all government transactions?
Answer: No.
Only specific cases meeting conditions are covered.
Q8: Is this notification still relevant?
Answer: Limited relevance today.
Section 9(4) itself has been restricted.
Q9: Do small vendors benefit from this?
Answer: Yes.
It reduces compliance burden on unregistered suppliers.
Q10: Is GST registration required for small suppliers?
Answer: Not necessarily.
If below threshold, they can remain unregistered.
Q11: What documentation is required?
Answer: Basic invoices and records.
Proof of supplier status is important.
Q12: Can wrong application lead to issues?
Answer: Yes.
Incorrect exemption can result in tax demand.
Q13: Does this affect TDS deduction?
Answer: No.
TDS provisions continue separately.
Q14: What is the main benefit?
Answer: Reduced compliance burden.
It simplifies transactions with small vendors.
Download PDF: Notification No. 09/2017 – Central Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
Read more interesting articles:
