RCM ON GOODS PURCHASED FROM URD

A registered partnership firm having GST number provides work contract service of commercial building as per work order. He purchases building material from registered as well as unregistered dealer. Do He require to pay RCM on URD purchase, can he claim ITC in subsequent month?

An advocate is providing service to a urd person and receives fees of Rs.20 lakh. Does rcm applicable to urd person? 

Replies (3)
Quick Summary
This discussion explores the applicability of the Reverse Charge Mechanism (RCM) on goods and services purchased from Unregistered Dealers (URD) within the context of work contracts, specifically commercial building construction. It questions whether RCM applies to URD purchases of building materials and advocate services, and crucially, whether Input Tax Credit (ITC) can be claimed on these purchases and subsequent GST payments. The complexities of mixed supplies versus pure services in tendering processes are also examined.

Generally there is no provisions to avail ITC for works contract, further urd purchase also eligible to pay RCM as per sec.9 (4).
Here the contract is for civil work goods and services both and the contractor is providing Tax Invoice with GST @ 18%, ITC still not allowable? Total commercial civil work.

The contractor has received contract through tender process for carried out civil work i.e. commercial construction work. He purchased building materials like sand, cement, iron and steel, furniture, electrification, fabrication work etc and hires labor contractor. He raises Tax Invoice with GST @ 18% as per SOR approved through tendering process. He claims ITC on material purchase and Labor charges. Please comment. Whether it is work contract, Pure Service or Mix Supply?  

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register