RCM Not Applicable To Intra-State Supply Of Goods & Services Below Value Of Rs. 5000

RCM not applicable to Intra-State Supply of Goods & Services below value of Rs. 5000

RCM not applicable to Intra-State (within one state) Supply of Goods & Services below the value of Rs. 5000 by an Unregistered Person to a Registered Person. Only transactions between parties registered in same state can get benefit of this notification. Note that transaction between parties registered in different state where IGST will be applicable can not take benefit of this notification.

Notification issued gives relief only in matter of CGST. It does not speak anything about SGST. It means 

RCM is withdrawn only for CGST and under SGST & IGST position of RCM has not changed.

We expect that soon State Governments will issue similar notification to give full effect to the notification issued by Central Govt.

Below is Notification Extract.