RCM ON EXEMPTED PRODUCT UNDER GST.

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This discussion clarifies that Reverse Charge Mechanism (RCM) is generally not applicable to goods purchased under an exempted GST rate. Even if you process these goods to create a taxable final product, the RCM won't apply to the initial purchase. GST will only be payable on your outward supply of the processed, taxable product. The thread lists specific cases where RCM on goods *is* applicable, such as certain raw materials and lottery supplies.

krunal patel

krunal patel (Querist)

12 June 2020 If I purchase any goods on which GST rate is exempted, but after doing some process on that good and made final product which is taxable in GST.

so my question is whether I need to pay RCM on goods purchased which are exempted in GST?

Please Reply sir...

Spurto Consultancy Services

Spurto Consultancy Services (Expert)

12 June 2020 RCM is not applicable in case of all exempted goods. In case the goods become taxable after processing at the time of supply then GST have to be paid on outward supply. The inward supply will still remain exempted.
RCM on goods is applicable only in the following cases:
a. Cashew nuts, not shelled or peeled
b. Bidi wrapper leaves (tendu)
c. Tobacco Leaves
d. Silk yarn
e. Supply of lottery
f. Used vehicles, seized and confiscated goods, old and used goods, waste and scrap
g. Raw cotton
h. Priority Sector Lending Certificate

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krunal patel

krunal patel (Querist)

12 June 2020 thank you so mach sir for reply...

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