applicabiity of RCM

[FARIDUDDIN AHMAD]

my query is-for what period RCM is payable on purchase of wood from unregistered delars for manufacturing of ply board in up sgst act 2017.further in F.Y-2022-23 RCM is payable or not.

[Amit Agrawal]

Under Notification No.4/2017-Central Tax (Rate) (as amended from time to time, till date), there is no mention of 'wood' - as specified goods - where liability to pay GST under RCM u/s 9 (3) of the CGST Act, 2017 is notified.

W.r.t. your query about UP SGST Act, 2017, "generally speaking", it should be replica of above-said Notification No.4/2017-Central Tax (Rate) (as amended from time to time, till date). But, one needs to check relevant notifications under UP SGST Act, 2017 before reaching any conclusion.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[KASTURI SETHI]

Wood is under FCM. See 4403, 4407, 4408, 4409, 4410 and all these attract GST @ 18%.

[KASTURI SETHI]

A composition dealer cannot purchase from un-registered person.

[FARIDUDDIN AHMAD]

With regards to reply of kasturi Seth sir my query is related to registered dealer. It is manufacturing unit

[KASTURI SETHI]

Re-examined. I agree with Sh.Amit Agrawal Sir. My reply at serial no.3 above may pl.be treated amended in the light of reply of Sh.Amit Agrawal, Sir.

[Shilpi Jain]

Initially when GST was implemented there was liability under RCM w.r.t. purchases from unregistered persons. This was later amended to be removed during Oct '17 and presently there is no such liability under RCM for the present kind of transaction.

AI Summary

Reverse charge mechanism: purchases of wood from unregistered suppliers are not currently subject to RCM under amended GST notifications. RCM does not presently apply to purchases of wood from unregistered dealers for plywood manufacturing under the central Notification No.4/2017 as amended; the initial RCM obligation for purchases from unregistered persons was removed and state notifications (including UP SGST) should be checked to confirm consistent treatment.