RCM related query

If i purchase the goods from unregistered vendor for trading in goods which are not notified in 9(3) for RCM do i still need to pay tax under RCM as he is unregistered or i can directly sell it and pay the whole tax collected.
Replies (4)
Quick Summary
This discussion clarifies when the Reverse Charge Mechanism (RCM) applies to goods purchased from unregistered vendors under GST. RCM is applicable for specific notified goods like cashew nuts, bidi wrappers, tobacco leaves, silk yarn, and raw cotton, especially when purchased from agriculturists or manufacturers. However, for most other inward supplies from unregistered vendors, RCM is not applicable, and the recipient can directly sell the goods and pay the collected tax. An exception exists for promoters/developers under Notification 7/2019 CT(R) where RCM may apply to supplies from unregistered vendors.

Therea no need to pay the RCM on good purchased from unregistered Dealer
Yes goods which are mentioned in Notification 4/2017 , 43/2017 (both CT (r)) are covered under Section 9(3) of CGST Act & RCM is Applicable.

So if you are Recepeint for following goods the RCM is applicable :

Cashew Nuts, Bidi wrappers, Tobacco leaves From Agriculturist & Silk Yarn from any person who manufacture silk yarn from Raw Silk. (Refer Notification 4/2017 CT (r)

Raw Cotton From Agriculturist (Refer Notification 43/2017 CT (R) .


other then above any inward supply from URD is treated as Exempted supply hence No RCM Applicable, Yes as per Notification 7/2019 CT (R) if Receptient is Promotor/developer, any supply from URD the RCM is applicable , subject to conditions prescribed therein.
Thankyou so much
You are always welcome 😊

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