purchase MRP rpdocut from URD then GST is applicable

[jayesh thacker]

I purchase some MRP Product like weffer, biscuits from URD, in this case rcm is applicable and gst exempt or payable

[MUKUND THAKKAR]

Your turnover is more than 20 lakhs than you have to pay under RCM if purchase from URD.

if turnover is less than 20lakhs need not pay under RCM because transaction between URD to URD..

[Rajagopalan Ranganathan]

Sir,

Section 9 (4) of Central Goods and Service Tax Act, 2017 states that-

The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered,to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.

Therefore GST is payable by you when you receive MRP Products like waffer, biscuits from URD.

[Ganeshan Kalyani]

Yes , section 9 (4) of CGST Act, 2017 states that a registered person shall pay tax under reverse charge on the purchases made by him from an unregistered dealer. Further there is not concept of MRP in GST. However, they are required as per legal meteorology act.

[vk agarwal]

there is an exemption on purchases from URD up to ₹ 5000/- per day taken together from all URDs

AI Summary

Reverse charge on purchases from unregistered dealers requires the registered recipient to pay GST on taxable supplies received.
Supplies received by a registered person from an unregistered dealer attract reverse charge liability: the registered recipient must pay GST on taxable supplies from unregistered suppliers and assume the obligations of the person liable to pay tax; MRP is not a GST concept but relates to Legal Metrology. Practitioners noted turnover linked registration considerations and a reported small day wise exemption for purchases from unregistered dealers.