purchase of underground water line from an unregistered person by a GST holder

[Balaji G]

a company proposes to purchase an existing water pipe line installed by a farmer for irrigation to use for the company purpose in as it is condition. will it be covered under GST. Company is registered under GST but may not have ITC benefit as their products are not taxable. kindly give your views. will it come under RCM as it is not in the listed goods or as the pipe work may be considered as a works contract will it attract GST.

AI Summary

GST taxability of purchased underground pipeline depends on transfer character and classification, affecting reverse charge and ITC rights.
Purchase of an existing underground irrigation pipeline installed by an individual should be treated according to the character of the transfer: an "as is" purchase of tangible pipeline infrastructure is likely a supply of goods or capital asset (not a works contract) and may attract GST unless excluded; whether RCM applies and whether the buyer can claim input tax credit depends on whether the supply is within statutory listings, the seller's registration status, the precise classification (including possible treatment as Plant), and whether the transaction involves transfer of land or merely a right.