Reverse chargre

This query is : Resolved

Ajay Agarwal (Querist)
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04 June 2017 Dear Experts
Is reverse charge applicable -
If a registered dealer purchase goods (agriculture commodity) from farmer .

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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04 June 2017 no it is not applicable

Ajay Agarwal

Ajay Agarwal (Querist)
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04 June 2017 If purchase from other than farmer.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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22 July 2025 Here’s a quick clarification on reverse charge when purchasing agricultural goods from farmers:

Is Reverse Charge Applicable if a Registered Dealer Purchases Goods (Agricultural Commodities) from a Farmer?
No, Reverse Charge is NOT applicable on purchase of agricultural produce from farmers.

Farmers are generally unregistered suppliers but agricultural produce is exempt from GST or covered under specific exemptions.

Hence, the registered dealer does not have to pay GST under reverse charge on purchase from farmers.

What if the purchase is from other than farmers?
If the supplier is unregistered and supply falls under notified goods or services under reverse charge, then yes, reverse charge may be applicable.

But agricultural produce from farmers is specifically excluded from reverse charge.

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