Is GST to be payable on RCM, if registeresd person purchases from unregistered person.

[Rajesh Kumar]

Sir/Madam

I want to know the provisions of Section 9(4) of the CGST amended time to time. If a registered person make purchases of goods/ services from unregistered persons, then the registered person is required to pay GST on that purchases or services taken from unregistered person.

[KASTURI SETHI]

If a registered person make purchases of goods/ services from unregistered persons, RCM is applicable to only specified goods, services and specified persons (Not applicable to all goods and services). See Notification No. 7/19-CT(R) dated 29.3.19 and 24/19-CT(R) dated 30.9.19.

[Shilpi Jain]

The liability under 9(4)presently is is for persons executing residential contacts at 5% (net) GST rate. In the 45th GST Council minutes it is also proposed to bring Mentha oil.

Apart from these , liability does not exist presently under this provision.

[Ganeshan Kalyani]

Sir, please specify the goods that you are going to buy from an unregistered person. We shall let you know the applicability of RCM.

AI Summary

Clarification on GST Reverse Charge Mechanism: Applicability for Registered Purchasers from Unregistered Sellers Under Section 9(4). A discussion on the applicability of the Goods and Services Tax (GST) under the Reverse Charge Mechanism (RCM) when a registered person purchases from an unregistered person. It is clarified that RCM applies only to specified goods, services, and persons, not universally. Notification No. 7/19-CT(R) and 24/19-CT(R) provide guidance. Currently, liability under Section 9(4) applies to residential contracts at a 5% GST rate, with potential inclusion of Mentha oil as per the 45th GST Council minutes. Further details on specific goods are necessary to determine RCM applicability.