RCM Applicable for Man Power Supply (URD) to Registered Dealer for below 1 Lakh

RCM is not applicable merely because labour/manpower is received from an unregistered person. After amendment of section 9(4), reverse charge on URD purchases applies only to notified class of recipients and notified supplies, mainly real-estate promoters for specified procurements. Hence, for normal manpower/labour supply to a registered dealer, GST under RCM is generally not payable. The fact that payment is below ₹1 lakh does not change the position.