TaxTMI 
TaxTMI 
purchases from urd
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....urchases from urd<br> Query (Issue) Started By: - AIJAZ KAZI Dated:- 26-4-2025 Last Reply Date:- 27-4-2025 Goods and Services Tax - GST<br>Got 3 Replies<br>GST<br>respected experts can a composition dealer purchase from unregistered dealer and is rcm applicable for the same or not applicable Reply By Sadanand Bulbule: The Reply: Yes. They can purchase goods from URDs. They are also liable to pa....
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....y tax under RCM in cash mode on such goods, which can not be used to set off OPT payable. Reply By Shilpi Jain: The Reply: Rcm is applicable only on notified procurements. All procurements from URP is not liable under rcm. Person constructing residential apartments liable under 5%, notified procurements liable under rcm for certain quantum of URP procurements. Reply By YAGAY andSUN: The....
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.... Reply: Great question - this relates to the interaction between composition scheme under GST and Reverse Charge Mechanism (RCM) under Section 9(4) of the CGST Act, 2017. Let's break it down: ✅ Can a Composition Dealer Purchase from an Unregistered Dealer (URD)? 👉 Yes, a composition dealer can purchase goods or services from an unregistered supplier. 📌 There is no restri....
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....ction in the law that bars composition taxpayers from procuring from unregistered dealers. ⚖️ Is RCM Applicable on Purchases from Unregistered Dealers (Section 9(4))? ✅ As per current law: RCM under Section 9(4) (i.e., purchase of goods/services from unregistered supplier) is NOT applicable to any person except in cases notified by the Government. 🔹 Current status (p....
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....ost-2018 amendment): RCM under Section 9(4) applies only in specific cases notified by the Government (like certain construction-related supplies to promoters). For general B2B URD purchases - RCM is not applicable. 📘 Applicability to Composition Dealer: ✅ So, if a composition dealer purchases goods/services from an unregistered person, RCM under Section 9(4) does not apply, unle....
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....ss specifically notified. 🛑 Also note: Composition dealers cannot claim ITC, so even if RCM was applicable, ITC on such RCM would not be available to them. 🔖 Summary: Particulars Composition Dealer Remarks Can buy from URD? ✅ Yes No restriction RCM applicable on URD purchase? ❌ No (Section 9(4) RCM not generally applicable) Unless notified Can claim ITC on ....
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....RCM? ❌ No Composition scheme blocks ITC ***<br> Discussion Forum - Knowledge Sharing ....