a gst registered composite scheme dealer purchases of old gunnyies from URD persons. question: dealer RCM applicable for URD persons of old gunnyies in gst act.
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Quick Summary
This discussion clarifies whether a GST-registered composite scheme dealer needs to apply the Reverse Charge Mechanism (RCM) when purchasing old gunny sacks from unregistered persons (URD). The consensus is that RCM is not applicable in this scenario. This is because the provisions for RCM on purchases from URDs, as amended in 2019, now only apply to specific notified goods and persons, and old gunny sacks do not fall under these specified categories.
The Provisions of RCM U/s 9(4) of the CGST Act 2017 has been amended vide the CGST Amendment Act 2018 w.e.f 01/02/2019. Now RCM on Purchase from URD is applicable only on notified "specified goods" procured by "specified. persons".
Old gunnyies is not a specified goods for the purpose of RCM on Purchase from URD.