RCM on Groundnut purchased from farmers

No. RCM is not applicable on the purchase of groundnuts directly from farmers in India.

RCM on groundnuts from farmers:

• No. Groundnuts aren't notified for RCM (the RCM list includes cashew nuts, raw cotton, tobacco leaves, etc.). Agriculturists selling their own produce aren't required to register. So no GST on these purchases.

RCM does not apply merely because groundnut is purchased directly from farmers. Under GST, reverse charge on specified agricultural produce applies to notified goods supplied by an agriculturist to a registered person; groundnuts are not among the notified goods for this purpose. The result may differ if the transaction is actually for a separately notified service or another RCM category, rather than a purchase of groundnuts.

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