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Payment of rcm

01 August 2020

have a query for examole- I am buying some material like scrap material from any UNREGISTERED PARTY is it mandatory for me to make payment of gst amount in rcm,--- and if not then how will I sell my materials to any other party as I have made the paymeny to the UNREGISTERED PARTY in bank or say how will I deal this matter . Please help me as soon as possible.

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2 Replies

CA Mayank A Jain (Chartered Accountant in Practice) (1260 Points)
Replied 01 August 2020

There is no requirement for payment of tax under RCM on procurements from unregistered person post 13.07.2017. The material purchased could be accounted as purchase from unregistered person in books of accounts. When such scrap is sold, applicable GST should be paid.

The above would be sufficient compliance. I don't see any other issue or challenge.