TaxTMI 
TaxTMI 
One of my new client is the scrap dealer who purchase scrap (unconditioned - not fit for further use harvestors & commercial vehicles ) from B2C,dismentling it and sold for scrap to B2B & B2C.
Query:
When purchase whether RCM is applicable for him
RCM Liability under GST- RCM ITC utilisation
09 Mar 2026 
4 Replies 
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Reverse Charge Mechanism on scrap purchases requires self invoicing and cash GST payment; ITC claimable after payment.
Reverse Charge Mechanism applies to purchases of scrap from unregistered persons effective 10 October 2024; the registered purchaser must issue a self invoice for each purchase, pay RCM tax in cash via GSTR 3B and report inward RCM supplies, and ITC for RCM is claimable only in the tax period in which the tax has been paid in cash, subject to usual eligibility conditions. (AI Summary)
Reverse Charge Mechanism applies to purchases of scrap from unregistered persons effective 10 October 2024; the registered purchaser must issue a self invoice for each purchase, pay RCM tax in cash via GSTR 3B and report inward RCM supplies, and ITC for RCM is claimable only in the tax period in which the tax has been paid in cash, subject to usual eligibility conditions. (AI Summary)