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2021 (9) TMI 569 - AAR - GSTPurchase Scrap/Used vehicles from Unregistered Dealers by Composition dealer - applicability of Reverse Charge Mechanism on these purchases - RCM exemption limit amount for purchase of Scrap and Used vehicles from unregistered dealers - HELD THAT:- Vide Section 9(3) of CGST Act, Government may specify the categories of supply of goods or service or both on which the tax shall be paid on reverse charge mechanism by the recipient. In exercise of powers of section 9(3) of CGST Act, The Central Government specifies at The Sr no 6 to Notification No.4/2017-Central Tax(Rate) dated 28-6-17,central tax shall be paid on reverse charge basis by the recipient - Vide Section 9(4) of the CGST Act, Government may specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both. Notification No.7/2019-Central Tax(Rate) dated 29-3-19 notifies that the specified registered persons shall, in respect of supply of goods or services or both, received from an unregistered supplier shall pay tax on reverse charge basis as recipient of such goods or services or both. However, subject goods are not notified vide said Notification 7/2019-CT(R). Composition Dealer purchasing Scrap/Used vehicles from the following Suppliers, namely Central Government, State Government, Union territory or a local authority are liable to pay tax on RCM basis - there is no RCM tax liability for purchase of subject goods from unregistered dealers.
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