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

Reverse charge on purchases from unregistered suppliers may apply; exemption periods and notifications determine liability and remedies.
Whether purchases of jute bags from unregistered suppliers used to pack wheat attract liability under the Reverse Charge Mechanism. Registered buyers were liable to pay tax on taxable supplies received from unregistered suppliers, subject to an initial exemption capped per day (01.07.2017-12.10.2017), followed by a broader exemption from 13.10.2017 extended through 2019, and eventual rescission of that exemption effective 01.02.2019. Liability depends on precise transaction dates, exemption applicability, taxability of supplies, and whether RCM was discharged, with potential issues about input tax credit and challenging demands.