Purchases a cement materials from composition dealer

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This discussion clarifies whether a company, not involved in construction, is liable to pay GST under Reverse Charge Mechanism (RCM) when purchasing cement from a composition dealer for its own building construction. The consensus is that RCM is not applicable in this scenario, as the dealer is registered and GST is typically paid by the supplier. RCM is generally only applicable when purchasing cement from an Unregistered Dealer (URD).

Marimuthu

Marimuthu (Querist)
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18 April 2023 Dear Experts,

01. If a company (Not a construction company) purchases a cement materials for its building construction purpose ( will be capitalized) from composition dealer, will this company have the liability to pay the GST under RCM basis,

Pl clarify