GST URD Purchases

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This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) for Goods and Services Tax (GST) when a registered dealer purchases from an unregistered person (URD). Generally, RCM is not applicable on such purchases, with a notable exception for the real estate industry. The RCM for URD supplies was introduced from 1st February 2019, but only applies to specific goods and services as detailed in official GST FAQs.

Praveet

Praveet (Querist)

11 June 2021 GST Registered dealer purchases goods from URD person RCM applicable Or no

CA Altamush Zafar

CA Altamush Zafar (Expert)

11 June 2021 RCM not applicable. RCM applicable on urd only for real estate industry

Ganeshbabu K

Ganeshbabu K (Expert)

12 June 2021 Reverse Charge Mechanism (in case of supplies made by unregistered persons to registered persons) will apply, starting from 1st Feb 2019, only on specified goods/services and specified persons.

List of specified goods/ services : Refer https://wbcomtax.nic.in/GST/GST_FAQ/Reverse_Charge_Mechanism_under_GST.pdf

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