RCM Tax Liable

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.