RCM on Groundnut

Is Groundnut purchase from farmer liable under RCM during the year 2017 - 2018? What is the answer if Such Groundnut are sold @ 5% by the taxpayer
Replies (2)
Quick Summary
This discussion clarifies the applicability of Reverse Charge Mechanism (RCM) on groundnut purchases from farmers during the 2017-2018 financial year. RCM was applicable to inward supplies from unregistered persons until 13th October 2017. Therefore, purchases made before this date from farmers would be liable under RCM. If these groundnuts are subsequently sold by the taxpayer at a 5% tax rate, Input Tax Credit (ITC) can be claimed.

RCM on inward supply from URD was Applicable till 13/10/2017 , So before 13/10/2017 RCM need to be done on purchase of groundnuts for rs 5000/- on day from farmer.
Agree with Pankaj Ji, just adding that if Groundnuts are sold with tax, ITC can also be claimed for the same.

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