Is composite dealer liable to pay RCM.
or the exempt from RCM.
Sec. 10(1) of CGST Act, begins with, “Notwithstanding anything to the contrary contained in this Act but subject to the provisions of sub-sections (3) and (4) of section 9…”
Subject to the provisions of… = on the condition of the provisions of the specified section being observed or complied with. This phrase is used when, while complying with one statutory provision, another provision relating to the subject-matter also must be complied with.
Further, Rule 5(1)(d) of CGST Rules specifies that he shall pay tax under sub-section (3) or sub-section (4) of section 9 on inward supply of goods or services or both.
So, RCM is also applicable for composition dealer.
Note: Though RCM u/s 9(3) will be applicable on notified supplies, RCM u/s 9(4) will now be applicable only for specified class of registered persons in respect of supply of specified categories of goods or services, which is yet to be notified.
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