Section 9(4) reverse charge

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ankit gupta (Querist)
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08 August 2019 A dealer sold raw cotton procured from farmers in Month of September 17. He is a commission agent (kaccha arhatia) under apmc act. Did he require to pay RCM under section 9(4) on purchase of raw cotton from farmers?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 August 2019 Purchase of raw cotton from farmers is exempt from GST hence RCM not applicable.

ankit gupta

ankit gupta (Querist)
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08 August 2019 Is there any notification in this regard? Raw cotton is taxable @5%

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 August 2019 You are right RCM applicable u/s 9(3).
Commission agent who becomes liable for registration under section 22 (1) of the Acts ibid, shall also become liable to pay tax on supply of raw cotton by an agriculturist on reverse charge basis being a registered person.