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

Reverse Charge Mechanism: registered government entities' liability for purchases from unregistered suppliers depends on applicable notifications.
Reverse Charge Mechanism liability for a registered government entity purchasing from unregistered suppliers depends on whether a statutory or executive notification has been issued to trigger tax on the recipient; respondents report no known notification and stress that reverse charge serves to prevent revenue leakage.