GST RCM APPLICABLITY
This query is : Resolved
16 February 2024
Whether GST RCM is applicable on Selling commission paid to a unregister vendor.
16 February 2024
No... Rcm not applicable for the commission paid to URP.
17 August 2025
The blanket RCM provision for supplies from unregistered persons under Section 9(4) was withdrawn in Feb 2019. It's now limited to notified cases only.
Real estate promoters face RCM if:
They procure less than 80% of inputs/services from registered suppliers,
They buy cement or capital goods from unregistered persons.
Section 9(3) continues to apply RCM for other specific supplies—like legal services, e-comm services, raw agricultural goods, etc.
RCM recipients must register under GST regardless of turnover thresholds.
A ₹5,000 daily threshold exemption protects recipients from RCM on minor purchases from unregistered suppliers.
Including these elements ensures a comprehensive understanding of RCM’s scope and exceptions under the current GST framework.
Real estate promoters face RCM if:
They procure less than 80% of inputs/services from registered suppliers,
They buy cement or capital goods from unregistered persons.
Section 9(3) continues to apply RCM for other specific supplies—like legal services, e-comm services, raw agricultural goods, etc.
RCM recipients must register under GST regardless of turnover thresholds.
A ₹5,000 daily threshold exemption protects recipients from RCM on minor purchases from unregistered suppliers.
Including these elements ensures a comprehensive understanding of RCM’s scope and exceptions under the current GST framework.
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