RCM on AMC (Agricultural Market Cess)

[Rajendra Prasad]

Dear Sir,

Whether RCM is applicable on AMC (Agricultural Market Committee Cess) paid to Agricultural Market Committee towards purchase of Agricultural Produce. Please clarify.

[KASTURI SETHI]

RCM is not applicable. Section 9(3) & (4) of CGST Act, 2017 read with relevant notifications for specified goods and services talks of Central Goods & Services Act only and not other allied Acts. Cess mentioned by you is being collected under State Agricultural Produce Marketing Act. This State Act is out of CGST Act.

AI Summary

Reverse charge mechanism not applicable to agricultural market cess, as it is levied under state marketing law. RCM does not apply to Agricultural Market Cess because Section 9(3) and 9(4) of the CGST Act and related notifications address liabilities under the CGST framework only, whereas the cess is levied under the State Agricultural Produce Marketing Act and thus lies outside the CGST Act's reverse charge provisions.