RCM for the Purchase from the unregistered dealer

[Tejal Singh]

Is government organization having GST registration needs to pay RCM for the purchase made from the Unregistered dealers?

[Alkesh Jani]

Sir/Madam,

The query raised by you is with regards to Section 9(4) of CGST Act,2017. Till date, I am not aware of any such notification has been issued by the Board. However, If any may please share.

Thanks

[KASTURI SETHI]

I concur with the views of Sh.Alkesh Jani Ji. I further add that the main purpose behind RCM is to plug the leakage of revenue.

AI Summary

Government Body with GST Registration Not Required to Pay RCM for Purchases from Unregistered Dealers per Section 9(4) CGST Act. A query was raised regarding whether a government organization with GST registration must pay Reverse Charge Mechanism (RCM) for purchases from unregistered dealers. One response referenced Section 9(4) of the CGST Act, 2017, indicating no known notification requiring this. Another respondent agreed, emphasizing that the purpose of RCM is to prevent revenue leakage.