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RCM Applicable

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SRIDARAN V

55 Points Posted on 03 June 2020

A registered dealer made purchases of old iron, plastic scrap etc. from un-registered persons, the same goods are sold to registered dealers.
In this connection RCM applicable or not his purchases. pl clarify with any amendment in this regards.

Replies (8)

Quick Summary

This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) on purchases made by registered dealers from unregistered persons. As per amendments to Section 9(4) of the CGST Act and relevant notifications, RCM is generally not applicable in such cases. It is now limited to specific notified goods and suppliers, with 'Promoters' in the real estate sector being the primary category currently covered.

prasad Nilugal

3924 Points Posted on 03 June 2020

No RCM not applicable , however you please confirm with others also .

CA Raj Doshi

Practising CA

8954 Points Posted on 03 June 2020

RCM not applicable

Shivam RC

Student

23693 Points Posted on 03 June 2020

The Provision of Reverse Charge Mechanism ( RCM ) under Section 9(4) of the CGST Act 2017 is not applicable at your case.

Section 9(4) has been amended vide the CGST Amendment Act 2018 and it is now applicable only on notified goods and for notified suppliers.

Account Bird

157 Points Posted on 03 June 2020

Sir Right now RCM is applicable on PROMOTERS only.
All Other categories are not covered in RCM.

Pankaj Rawat

GST Practitioner

55067 Points Posted on 03 June 2020

Yes .... agree with above replies, RCM on inward supply from URD has been kept in abeyance vide Notification 38/2017 CT (R) & Section 9(4) being substituted vide GST Amendment Act, 2018 , stating , council will specify the class of person & category of goods on which RCM shall be applicable & as per Notification 7/2019 CT(R) , the class of person is Real Estate "Promotor"

So in your case No RCM Applicable.