Rcm...urgent help required

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A query regarding Goods and Services Tax (GST) liability under Reverse Charge Mechanism (RCM) for purchasing a high-value MRI machine from an unregistered individual. The response clarifies that RCM typically applies to notified goods. It also advises caution regarding the seller's registration status and the potential implications for input tax credit if the seller is unregistered but should be. A written contract is recommended to manage future GST claims.

Manisha Makhija

Manisha Makhija (Querist)
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18 March 2025 I am suppose to purchase a mri machine of 2cr from a unregistered person..m i required to pay gst on rcm basis on that..pls clarify

Dayal

Dayal (Expert)
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19 March 2025 GST under RCM is for notified goods. If the said goods are covered under the notification. However if the supplier is making a transaction, he is already covered under the threshold limit and will need to take a registration, failure on his part will attract GST at a later stage and if the time period lapses then the credit will not be eligible. Have a written contract that at a later stage GST claim from the supplier will not be entertained