1. RCM PAYMENT ON URP PURCHASE FOR GST RETURN

This query is : Resolved

MURARI PRASAD SAHU (Querist)
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02 February 2024 Hello Sir,
I am a GST Registered Trader of Fly Ash. We Purchase our Raw from UNregistered small URP vendors and sell that to the registered persons.
My question is whether I have to pay Tax on reverse Charge Although I am paying total tax on outward supplies.
According to the provision only notified goods or services are mandatory to show purchase under reverse charge under section 9(3) and 9(4) and buying fly ash from an unregistered person is not listed there.

How to deal with URP purchase for Invoice making , E - way Bill generation, accounting and GST Return. Kindly suggest me in this regards.
Thanking you,

RAJA P M

RAJA P M (Expert)
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02 February 2024 No need any of that GST activities for the purchase from URD if the said goods not listed under RCM.

MURARI PRASAD SAHU

MURARI PRASAD SAHU (Querist)
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13 February 2024 Thanks Sir,
URP purchase Invoice to be made by Self (own) invoice or through URP. How to generate E - way Bill of URP Purchase and accounting entries under. Kindly suggest me in this regards in details.
Thanking you,

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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13 August 2025 1. Is Reverse Charge Applicable on Purchase from URP?
Section 9(3) and 9(4) of CGST Act list specific goods and services on which RCM is applicable.
Fly Ash is NOT notified under RCM for purchase from unregistered suppliers.
So, you are NOT required to pay GST under Reverse Charge on purchase of fly ash from URP.
2. Invoice Making for Purchase from URP
Since URP is unregistered, they cannot issue a GST invoice.
You should create a "Self-Invoice" (also called Bill of Supply if the supplier is unregistered and GST is not applicable).
Self-invoice should contain all the details as per GST rules (your GSTIN, supplier details as ‘unregistered’, invoice number, date, description, quantity, value, etc.).
3. E-Way Bill Generation
E-way bill is required if the value of goods exceeds ₹50,000 in a single consignment.
For goods purchased from URP, since no GST is paid, you must generate e-way bill in your own name as the transporter/supplier.
In the e-way bill system, select “Unregistered Person” as the supplier and enter your GSTIN as recipient.
This is mandatory for movement of goods beyond ₹50,000.
4. Accounting Entries
Purchase entry (with self-invoice) without GST input credit:
Purchase A/c (Fly Ash) ........ Dr. ₹ XX,XXX
To Cash/Bank A/c ₹ XX,XXX
No GST input credit will be available as no GST was paid on purchase.
5. GST Return Filing
Since no GST was paid on purchase from URP and no RCM applicable, do not report these purchases under reverse charge in GST returns.
You should report only your outward supplies in GSTR-1 and GSTR-3B with applicable GST.
Purchases from URP are neither reported in GSTR-2B (auto-populated) nor under RCM liability.

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