Notification No. 45/2017 - Integrated Tax (Rate) Explained

Want to File ITR, GST Returns & Pvt. Ltd. Registration

Notification No. 45/2017 - Integrated Tax (Rate): seeks to amend notification no. 4/2017- Integrated tax(rate) dated 28.06.2017 to give effect to GST council decision regarding reverse charge on raw cotton.

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 (3) of section 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on the recommendations of the Council, the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 4/2017- Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G. S. R. 669 (E), dated the 28th June, 2017, namely:-

In the said notification, in the TABLE, -

(i) after Sl. No. 4 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: -

“4A.

5201

Raw cotton

Agriculturist

Any registered person”.

2. This notification shall come into force with effect from the 15^th day of November, 2017.

(Ruchi Bisht)
Under Secretary to
Government of India

Note: - The principal notification No. 4/2017- Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number

G.S.R. 669(E), dated the 28th June, 2017and last amended by Notification No. 37/2017- Integrated Tax (Rate) dated 13^th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1290 (E), dated the 13th October, 2017.

📚 Frequently Asked Questions (FAQs): Notification No. 45/2017 — Integrated Tax (Rate)

Q1: Who pays GST on raw cotton under Notification 45/2017?

Answer: The buyer (registered person).
When raw cotton is supplied by an agriculturist, GST is payable under reverse charge by the recipient.

Q2: Is the farmer required to register under GST?

Answer: No.
Agriculturists are generally exempt from GST registration.

Q3: What is GST rate on raw cotton?

Answer: 5%.
Applicable under RCM when conditions are met.

Q4: Can buyer claim ITC on RCM payment?

Answer: Yes.
Input tax credit is available subject to conditions.

Q5: What if supplier is not an agriculturist?

Answer: Normal GST applies.
RCM does not apply in that case.

Q6: Is self-invoice required?

Answer: Yes.
Buyer must issue self-invoice for RCM transactions.

Q7: When should GST be paid under RCM?

Answer: At time of supply.
As per GST rules.

Q8: Does this apply to cotton traders also?

Answer: Only if supplier is agriculturist.
Otherwise normal tax applies.

Q9: Is ITC immediate?

Answer: Yes, after payment.
ITC can be claimed in same return cycle.

Q10: What if RCM is not paid?

Answer: Liability arises with penalty.
Interest may also apply.

Q11: Does this affect small businesses?

Answer: Yes.
Especially those buying directly from farmers.

Q12: Is this still applicable?

Answer: Yes, currently active.
Always check for updates.

Q13: Why RCM instead of normal GST?

Answer: To simplify farmer compliance.
Government collects tax from organized sector.

Claim your TDS Refund before it EXPIRE in

ITR Filing Starts Only

GST Return Filing Starts Only