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WORKS CONTACT

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Ranjeet Ram

4 Points Posted on 01 March 2020

A works contractor uses sand , murrum and stone in his work ,but no purchase bill given by the supplier(unregistered person) for the same.

whether the above materials are chargeable to reverse charge in the hands of contractor?

Replies (3)

Quick Summary

This discussion clarifies the GST treatment for works contractors purchasing sand, murrum, and stone from unregistered suppliers without bills. It confirms that these materials are considered exempted inward supplies and are not subject to Reverse Charge Mechanism (RCM) when purchased by a works contractor. The key distinction is made that this applies to contractors, not developers or promoters.