RCM Tax Liable

Hello Everyone, One of my client is doing timber (wood) business..Purchasing from URD. And selling to registered dealer. He is not getting purchase bill as the party is unregistered.

1. So my question is should my client liable to pay input tax on reverse charge basis ?

2. Or directly can he pay output liablity arising from sale ?
Replies (2)
Quick Summary
This discussion clarifies GST implications for a timber business purchasing from unregistered dealers (URDs) and selling to registered dealers. It confirms that there is currently no Reverse Charge Mechanism (RCM) applicable on inward supplies from URDs for timber, especially when the GST rate is NIL. Therefore, the client is not liable to pay input tax on an RCM basis and should instead pay tax directly on their outward supplies.

1. No... as there is no RCM on inward supply from URD

2. Yes need to pay tax on his Outward Supply.

Right now no RCM is there for inward supply from URD.. GST rate is NIL in case of timber wedges.

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