I have a query for which I am confused that which are the goods in which the reverse charge mechanism applies? Like as government has declared the notified services, but what about the clarification for the goods. Are only RCM applicable on the goods notified vide Notification No. 4/2017-Central Tax Rate dated 28th June, 2017, which specifies the list of GOODS which are Cashew nut, Bidi Wrapper, Tobacco leaves, Silk Yarn and Lottery. But in general everyone is talking of RCM on every goods if purchase from Unregistered more than 5000 in a day. Please clarify the doubts the goods involved under RCM like we have the services which are notified. Section 9(3) starts with "Government may on recommendation with the council by notification, specify category of goods......?" Where is the notification? Is is the same 4/2017 dated 28th June.
Thanks
With Warm Regards
there is no notification till yet specifically for goods. Notification which has issued under that section is only for goods. however government has the power to issue any such notification and declare any goods to fall under rcm.
BUT under section 9(4), both services and goods are covered. hence if rd buys any goods/ service from urd than he has to pay gst under rcm.
CAclubindia
