Purchase of Bileaves from Gram Sabha

[Ashwin Bhalakiya]

Dear Sir

I am registered in Maharashtra. We purchase Tendu Leaves from Gram Sabha, a local body in Maharashtra. They collect leaves and sale to us. They are not registered in GST. Hence not charging any GST. Whether being a registered buyer purchasing from Local Body, whether I am required to Pay RCM, because as per Notification No 4/2017 dated 28th June 2017, any purchase of Bidi Wrapper- leaves from Agriculturist then GST under RCM to be paid at 18%. But here seller is not agriculturist. Please guide whether I am required to Pay GST under RCM.

Ashwin

AI Summary

Tendu Leaf Purchase: Gram Sabha Not Covered Under GST Reverse Charge Mechanism for Buyer's Tax Liability In a GST-related query, a registered buyer seeks clarification on reverse charge mechanism (RCM) for purchasing tendu leaves from a local Gram Sabha. Legal analysis reveals that since the Gram Sabha is not an agriculturist, RCM provisions do not apply. The buyer is not required to pay GST under reverse charge, as the specific notification only covers purchases from individual agriculturists. Documentation supporting the supplier's status is recommended.