RCM ON CHILLIES

Reverse Charge Mechanism is applicable in case of :

• Imports
• Purchase from unregistered dealer.
• Supply of notified goods and services

If you purchase from a farm sale, RCM is applicable to you. If you are unregistered as well, then RCM is applicable to the registered person. 

As per section 2(98) of CGST Act’ 2017, “reverse charge” means the liability to pay tax by the recipient of the supply of goods or services or both instead of the supplier of such goods or services or both

RCM is applicable to a certain class of agricultural products like:

Bidi

Tobacco

Cashew

Cotton

Silk

But chillies is not mentioned here.

Sorry, I meant to say, chillies is not included in the list.