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GST Composition scheme - RCM on Purchase

sathya kumar s (AUDIT STAFF) (183 Points)

05 September 2021

One composition scheme dealer is there who 25% purchases are from Unregistered suppliers. Is he now required to Pay GST on RCM on such purchases made by him from unregistered dealers..?

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9 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 05 September 2021

Yes GST should be on RCM

prasad Nilugal ( GST Practitioner & Accounts ) (14149 Points)
Replied 05 September 2021

I think at present RCM applicable only to notifyed person and notifyed Goods and services by the GOVT not all .you have to confirm with others also .

chethan data (298 Points)
Replied 05 September 2021

Ur case rcm is not applicable

Shivam RC (Student) (23683 Points)
Replied 05 September 2021

Dear Sathya Kumar Sir,

RCM on Purchase from URD is now applicable only on notified goods and on notified suppliers after the CGST ( Amendment) Act 2018. As of now the government has notified transactions related to the "REAL ESTATE SECTOR" which will be covered under RCM on Purchase from Unregistered Dealer ( Section 9(4) of the CGST Act 2017 ).

Hence if are transactions are related to real estate goods like cement, bricks etc, then you have to pay GST via RCM on goods procured from URD. Anything other than Real Estate Items are not covered under RCM ( Section 9(4) ) as of now.

Regards,
Shivam RC.