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RCM for Composition Dealer

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Deep Shah

Job

169 Points Posted on 16 March 2020

I have GST Registration under Regular Composition Scheme being a Retailer/Trader. Kindly let me know if I make purchases from unregistered dealer do I need to pay RCM on the same?

Replies (2)

Quick Summary

This discussion clarifies whether composition scheme dealers need to pay Reverse Charge Mechanism (RCM) on purchases made from unregistered dealers. The consensus is that RCM is generally not applicable to such inward supplies for retailers and traders under the composition scheme. An exception exists for promoters/developers under specific conditions outlined in Notification 7/2019 CT(R).

Pankaj Rawat

GST Practitioner

55067 Points Posted on 16 March 2020

No.......there is no RCM on inward supply from URD except if Receptient is Promotor/developer that to be subject to conditions prescribed in Notification 7/2019 CT (r).

So for your RCM is not applicable