This discussion clarifies whether Reverse Charge Mechanism (RCM) applies to tobacco processing services when the processor is unregistered. The consensus is that RCM is not applicable in this specific scenario. Therefore, if you purchase tobacco from a farmer and process it further through an unregistered entity, you are not required to apply RCM on those processing charges.
20 September 2021
I PURCHASED TOBACCO FROM FARMER AND I DO RCM ON THAT. IF I FURTHER PROCESS TOBACCO, AND THE PERSON OF PROCESSING THIS TOBACCO IS UNREGISTERED. SO, ITS MY DUTY TO DO RCM ON PROCESSING? PLEASE HELP