RCM on raw cotton purchase from farmers

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71 Points Posted on 01 August 2020
is RCM applicable ?
if yes what is the effective date
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On 01 August 2020 at 12:04 Report
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Yes, the Reverse Charge Mechanism (RCM) is applicable when a registered person purchases raw cotton from farmers. This is in accordance with Notification No. 43/2017 of the Central Tax, dated 29/11/2017, which brings such transactions under the purview of Section 9(3) of the CGST Act. Therefore, GST implications under RCM need to be considered for these purchases.

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1313 Points Posted on 01 August 2020
Yes. As per the Notification No. 43/2017 dated 29/11/2017 of Central Tax, if the registered person purchased raw cotton from an agriculturist, purview of rule u/s 9(3)of CGST act eill be applicable.
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On 01 August 2020 at 16:45
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Tax and Business Consultant
11616 Points Posted on 02 August 2020
Yes, Buying cotton (kapas) HSN 5201 by registered person from farmers (unregistered persons) is liable for RCM as per Notification 43/2017 CT (r) dt. 14/11/2017
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On 02 August 2020 at 00:19

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