RCM under purchase of hand made goods from weaver.

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Manager
92 Points Posted on 14 December 2020

Do we have to pay GST under RCM if we purchase goods (Handloom/Handmade items) from weaver or artisans who are not registered in GST. 

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On 14 December 2020 at 09:51 Report
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This discussion clarifies whether GST under Reverse Charge Mechanism (RCM) applies when purchasing handmade goods from unregistered weavers or artisans. The consensus is that RCM is not applicable in this scenario. Instead, the supplier (weaver/artisan) is responsible for paying taxes to GSTN, and the buyer pays the full amount inclusive of these taxes.

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My grammar is 💯 good I
7306 Points Posted on 14 December 2020

Crafts is not on rcm list. So, you pay mrp taxes anyway

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On 14 December 2020 at 11:23
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Accountant
3662 Points Posted on 14 December 2020
RCM is not applicable
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On 14 December 2020 at 22:36
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Tax consultant
5895 Points Posted on 16 December 2020
No you can't
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On 16 December 2020 at 16:23
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CA
1258 Points Posted on 25 December 2020

RCM is not applicable on these goods. So supplier will pay tax to GSTN and you have to pay the amount inclusive of taxes to supplier

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On 25 December 2020 at 14:57

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