Is GST levy under RCM if RD person Purchase scrap on Auction by Police Station ?

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This query is : Resolved

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This discussion clarifies whether GST is applicable under the Reverse Charge Mechanism (RCM) when a registered dealer purchases scrap from a police station auction. The consensus is that RCM is indeed applicable in this scenario, as police departments fall under government control, making the purchase of scrap from them liable for RCM.

SANTOSH KUMAR SHARMA

SANTOSH KUMAR SHARMA (Querist)

28 October 2022 Is GST levy under RCM if Registered dealer person Purchase scrap on Auction by Police Station ?
Pls. answer

Thanks & Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

28 October 2022 No, not applicable...

SANTOSH KUMAR SHARMA

SANTOSH KUMAR SHARMA (Querist)

29 October 2022 But sir rcm is applicable if rd person purchase scrap from ps u/s 9(4) of central tax (rate)

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

29 October 2022 Correct...
Registered Dealer purchasing Scrap/Used vehicles from the following Suppliers, namely: Central Government, State Government, Union territory or a local authority are liable to pay tax on RCM basis. So considering it under state government control, RCM on Scrap purchase from police department would be liable.

SANTOSH KUMAR SHARMA

SANTOSH KUMAR SHARMA (Querist)

29 October 2022 Thanks for your Reply

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

29 October 2022 You are welcome..

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