Manoj Punjabi (Accountant) (307 Points)
07 July 2025Is RCM applicable o purchase of Grills, Railings, & labour from URD supplier for repairs & maintenace of premises, amount involved is Rs.11,000/= only
Buyer/Receiver of services is Trader, but not trading in above items, these iterms purchased for repairs & maintenance.
Gone through the list of items under RCM, these items & labour is not covered in list, but I am still doubtful whether RCM is applicable or not, seeking expert guidance.
Please guide.
Rama chary Rachakonda
(Master in Accounts & high court Advocate)
(8621 Points)
Replied 07 July 2025
To determine if RCM is applicable in this scenario, we need to consider the following factors:
1.Nature of the transaction: The transaction involves the purchase of goods (grills and railings) and services (labour) for repairs and maintenance of premises.
2.Supplier's status: The receipient (buyer) is a trader, but not trading in the items purchased (grills,railings, and labour).
So RCM is not applicable on the purchases of grills, railings, and labour from an unregistered dealer for repairs and maintenance of premises.
Md Nadim
(5 Points)
Replied 08 July 2025
Thanks for raising this query. From my understanding, if the supplier is URD and the items (railings/grills) fall under the category of "goods" and not "services", then RCM may not be applicable unless notified under specific GST provisions. However, if the transaction includes labour charges or installation, then RCM on services might come into play depending on the nature of the contract.
Would be great if someone can share any official clarification or circular on this. GST is still full of grey areas when it comes to URD purchases.
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