RCM on URD purchase above 5000

This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) on purchases from unregistered dealers (URD) for items like handmade masks and sanitiser. It explains that RCM is not applicable to these goods as they are not currently specified under Section 9(3) of the CGST Act 2017, and Section 9(4) is deferred. Furthermore, Notification 20/2020 exempts these items, meaning no RCM liability arises and input tax credit cannot be claimed.