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Reverse Charge on Purchase

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apurva agrawal

70 Points Posted on 14 June 2021

Is RCM payable on purchase of goods from unregistered person by registered person? Reply with notification no.

Replies (8)

Quick Summary

This discussion clarifies whether the Reverse Charge Mechanism (RCM) applies to purchases of goods from unregistered persons by registered persons. Current regulations, particularly after amendments to Section 9(4) of the CGST Act 2017, indicate that RCM is generally not applicable unless specific goods or services are notified by the government. Relevant notifications like 4/2017 and 7/2019 (CT-Rate) for goods, and 1/2019, are mentioned as points of reference.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 14 June 2021

RCM is applicable

prasad Nilugal

2353 Points Posted on 14 June 2021

1) RCM not applicable as per section 9(4) of the CGST act 2017 at present .
2) RCM applicable as per section 9(3) of the CGST act 2017
1)Notification-4/ 2017( CT) dated 28/6/2017
2) Notification -07/2019 ( CT -Rate) dated 29/3/2019 .
above notifications are regarding goods only ,If any other notification you have confirm from CBIC Web site / GST/ Notification.
please confirm with others also .

CA Altamush Zafar

GST Consultant

10402 Points Posted on 14 June 2021

RCM not applicable

CMA Poornima Madhava

CMA

9106 Points Posted on 14 June 2021

RCM not applicable

Rajamahendra Varma M.B.A.,LL.B

Advocate and GST Practitioner

221 Points Posted on 14 June 2021

Currently, RCM not applicable on purchase from unregistered dealers other than falling u/s 9(3)

apurva agrawal

70 Points Posted on 16 June 2021

Thank you all

prasad Nilugal

2353 Points Posted on 17 June 2021

As per CGST amendment act 2018 , wherein original section 9(4) of CGST act 2017 has been omitted and same section was amended stated that " RCM will be applicable on specified goods or services or both received from an unregistered person pay tax on RCM as per recondition of council , Govt will notify .
( In short GOVT will notify regarding RCM not in all cases we have to pay tax on RCM)
you also refer Notification 1/2019 dated 29/1/19 .

CA Puja Sharma

Chartered Accountant

3528 Points Posted on 17 June 2021

No, this RCM is not applicable. The provisions of section 9(4) of the CGST Act 2017 has been modified and now RCM is applicable only in case of specified goods and services from an unregistered person.