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.

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.