Rcm Applicability URD Purchase

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This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) for GST when purchasing iron scrap. If you buy scrap from an unregistered dealer, RCM generally applies, meaning you're responsible for paying the GST. The query further explores whether RCM is still applicable if you then sell this scrap to a registered dealer.

Praveet

Praveet (Querist)
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06 August 2024 Purchases iron scrap to URD Dealer RCM Applicable??

Aashok Kumar Sharma online

Aashok Kumar Sharma

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07 August 2024 If you purchase iron scrap from an unregistered dealer, the Reverse Charge Mechanism (RCM) typically applies. This means that you, as the recipient of the goods, are responsible for paying the GST directly to the government, rather than the supplier charging GST and paying it.

Praveet

Praveet (Querist)
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07 August 2024 But if I scrap buy from a unregistered person and sell the scrap to a registered dealer, will the RCM applicable

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