RCM ON CHILLIES
NETAJI SALUNKE (129 Points)
08 June 2020
we purchase chillies from Farmers and sale to registered person. in this case RCM is applicable or not sir.
5 Replies
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 08 June 2020
Reverse Charge Mechanism is applicable in case of :
- Imports
- Purchase from unregistered dealer.
- Supply of notified goods and services
If you purchase from a farm sale, RCM is applicable to you. If you are unregistered as well, then RCM is applicable to the registered person.
As per section 2(98) of CGST Act’ 2017, “reverse charge” means the liability to pay tax by the recipient of the supply of goods or services or both instead of the supplier of such goods or services or both
NETAJI SALUNKE
(129 Points)
Replied 08 June 2020
But Some people told me urd purchase chillies is not taken in RCM. please give me the complete details 🙏.
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 08 June 2020
RCM is applicable to a certain class of agricultural products like:
Bidi
Tobacco
Cashew
Cotton
Silk
But chillies is not mentioned here.
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 08 June 2020
Sorry, I meant to say, chillies is not included in the list.
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