RCM under GST

If you are registered dealer and purchased goods from unregistered dealers, than first you have to pay the tax on such purchases under reverse charge mechanism and than input can be claimed for the same.

Thank you for the Reply Mr Dhirajlal Sir...
In case ll be purchase from Composition dealer... RCM ll be applicable or not...?

No............ because composition dealer is a registered dealer under GST....

Only problem is....... because he gives bill of supply, ITC (chain) is broken....  Or.....     No ITC available

So that means that Input credit will be available to the person purchasing from Unregistered dealer?
but that forms one more doubt that by this practice price of product will rise like this:
suppose -
A(Unregistered) purchase from B (registered)
and pay GST to B, but to his unregistred firm he cannot claim Input credit. Now, C(registered) purchased these products from A and pay GST on RCM bases and sell these products direct to consumers.
Ultimately on the same product GST will be paid twice to Government.
1st by B sale made
2nd by C on sale to Consumer
and that makes the product costlier

Sir.,
then how to deal registered dealer purchase from registered (composition) dealer

Mr. Dhirajlal Sir., 
then how to deal registered dealer purchase from registered (composition) dealer

@ Chitresh............. Consumer/ purchaser evaluates marketibility before going in for deal.......

He is not bound by Seller but by economics........

@ Raja........... When composition dealer sell/supply...... he issues bill of supply and pay (1/2/5)% to government.  No Tax Invoice !!

RD is not liable to pay anything under RCM (like that in case of URD) but at the same time he is deprived of any ITC (not direcly paid, but indirectly priced).   When he sells, he has to charge full GST and pay it to government (GSTR - 1... Full) but (GSRT-2...'0').

@ Dhirajlal .... sir yes you can say that they are not bound to purchase from any particular seller and they can evaluate the prices ..
But isn't it the fact that prices of good in the case I have mention above will rise... from the above mentioned situation

@ Dhirajlal .... sir yes you can say that they are not bound to purchase from any particular seller and they can evaluate the prices ..
But isn't it the fact that prices of good in the case I have mention above will rise... from the above mentioned situation

Yes.......... In a way you are correct...........

But there are situations in retail trade....... where URD trading with URDs without any tax liability!!! (mostly daily use items)

And composition dealers trading btw themselves at just 1% while the supply may be listed at 18/28% !!!

So, let the clear picture come out!!

@ Mr. Dhirajlal Sir...
Thank you for the reply Sir.

It means register dealer ll avoid purchases from URD and RD_Comp....
am I right Sir....

@ Raja: You are right......... it will be an added cost as explained by Chitresh Moudgil.......

Thank You Sir...
It's very useful for me and my Clients. Thank you so Much Sir...