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RCM on Cotton and Soyabean

Technical PG (60 Points)

15 May 2018

Is RCM applicable on purchase from unregistered dealer ,goods like Cotton, Soyabean

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9 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 15 May 2018

No it is deferred by Noti.10 CT (r) till 30/06/2018, .... No RCM

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harsh (Business) (105 Points)
Replied 15 May 2018

Yes RCM applicable on cotton only

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 15 May 2018

Sorry , Yes RCM is applicable on cotton fro agriculturist. Raw Cotton under RCM from 15 Nov. 2017: CBEC Notification 43/2017 Central Tax Rate dt. 14 Nov

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CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 15 May 2018

As per 26th GST council meeting held on 10.03.2018, Reverse charge mechanism in case supplies made by unregistered persons to registered persons delayed till 1st july.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 15 May 2018

But cotton from agriculturist purchase is cover under section 9(3) ,

plz read noti.43/2017 CT (rate) ammended principal noti. 4/2017 CT (rate)

And
9(4) is suspended till 30/6/2018 by noti.10 /2018 CT (r) (purchase from URD)

So,.. RCM is applicable purchase of cotton from agriculturist

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harsh (Business) (105 Points)
Replied 15 May 2018

I think total cotton purchase is covered under 9(3)... What will be difference under purchase from agriculturist and urd...?

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 15 May 2018

Plz read both notification mention above

Balakrishnan (Proprietor) (342 Points)
Replied 31 December 2018

Raw Cotton is 'agriculural produce' within the definition of Noti. 12/2017 and that too if purchased from Agriculturist is sure exempted service. Hence RCM is not applicable.