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Purchase from unregistered dealer

veera (self) (287 Points)

11 November 2020

Sir can we purchase the goods from unregistered dealer for supply.
is there any limitations
kindly explain it with throw information.

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5 Replies

JATINDER KUMAR (Accountant) (3662 Points)
Replied 11 November 2020

No limitations

You can purchase

Shivam RC (Student) (23683 Points)
Replied 11 November 2020

There is no limit for purchasing from Unregistered Dealer.

Section 9(4) of the CGST Act 2017 i.e. RCM on Purchase from Unregistered Dealer is now applicable only on "Specified Goods or Services" procured by "Specified Persons". This change has been made vide the CGST Amendment Act 2018.

As of now only transactions related to "REAL ESTATE SECTOR" is notified. Developer / Promoter is a notified person for RCM U/s 9(4) of the CGST Act 2017. For example if a Promoter / Developer purchases Cement from Unregistered Dealer, then the developer is required to pay tax @ 28% under RCM.

So you can purchase any amount of goods from URD. There is no limitation unless you fall under the notified category.