RCM on Cotton

This query is : Resolved

sankar ponnan (Querist)
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14 April 2021 Sir / Mam
A registered person buys raw cotton from agriculturist and pays gst under RCM on purchase.

Plz confirm whether this concept is correct or not ?

Because, this product covers under reverse charge vide Notn. 43/2017 but from URD Purchase.

thanks in adv

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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15 April 2021 This is correct since purchase of raw cotton, tobacco and cashewnuts from agriculturists is covered u/s 9(3) of the Act which is mandatory RCM along with GTA and legal service.