This discussion addresses whether Goods and Services Tax (GST) needs to be paid under the Reverse Charge Mechanism (RCM) for purchases from Unregistered Dealers (URD). It clarifies that for general traders purchasing raw materials like tiles from URD suppliers, RCM is typically not applicable. Registered dealers must collect and pay GST on outward supplies, but not on inward supplies from URDs, as they are not permitted to collect tax from customers.
Yes offcourse it will increase the cost to customer...But once you are registered in term of Section 25(3) in GST all the provision of Act is applicable. And As per Section 32 URD is not allowed to collect Tax from Cistomer