rgarding composit supply

[FARIDUDDIN AHMAD]

my client is dealing in trading of wheat. wheats are purchase from agriculturist and sold to registered dealers. the wheats purchased from agricultures are packed in jute bags purchased from unregistered dealers and sold to registered dealers without charging any GST as the wheat is exempted goods in GST. he(my Client) received intimation u/s 61 that your nature of business required packing material but there is no purchase reflected in GSTR 2A it means that packing material are purchased from unregistered dealers which attract tax on reverse charge however no reverse charge has been paid by you during the period 2017 18. kindly advise is there any tax liability payable on jute bags purchased from unregistered dealers used for packing wheat for sale.

AI Summary

Client Faces Section 61 Notice for GST RCM Liability on Jute Bag Purchases from Unregistered Dealers, 2017-18. A client involved in trading wheat, exempt from GST, purchased jute bags from unregistered dealers for packaging. The client received a notice under section 61 due to the absence of these purchases in GSTR 2A, implying a reverse charge mechanism (RCM) liability for the period 2017-18. Experts on the forum clarified that from July 1, 2017, to October 12, 2017, GST was payable on purchases exceeding INR 5,000 per day from unregistered suppliers under RCM. However, subsequent notifications exempted such transactions until February 1, 2019. Discussions also considered the potential for challenging this levy and the availability of input tax credit.