Is GST to be payable on RCM, if registeresd person purchases from unregistered person., Goods and Services Tax - GST

[Rajesh Kumar]

Sir/Madam

I want to know the provisions of Section 9(4) of the CGST amended time to time. If a registered person make purchases of goods/ services from unregistered persons, then the registered person is required to pay GST on that purchases or services taken from unregistered person.

Posts / Replies

[KASTURI SETHI]

If a registered person make purchases of goods/ services from unregistered persons, RCM is applicable to only specified goods, services and specified persons (Not applicable to all goods and services). See Notification No. 7/19-CT(R) dated 29.3.19 and 24/19-CT(R) dated 30.9.19.

[Shilpi Jain]

The liability under 9(4)presently is is for persons executing residential contacts at 5% (net) GST rate. In the 45th GST Council minutes it is also proposed to bring Mentha oil.

Apart from these , liability does not exist presently under this provision.

[Ganeshan Kalyani]

Sir, please specify the goods that you are going to buy from an unregistered person. We shall let you know the applicability of RCM.