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RCM related query

Shubham (student) (73 Points)

26 May 2020

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.

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4 Replies

yash (accountant) (519 Points)
Replied 26 May 2020

Therea no need to pay the RCM on good purchased from unregistered Dealer

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 26 May 2020

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.

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