GST Amendments Applicable from 10th October 2024
Reverse Charge Mechanism
Purchase by registered taxpayer from unregistered person
- Buyer shall be liable to pay GST under RCM on purchase of Metal Scrap falling under Chapter 72 to 81 of Customs Tariff from unregistered Suppliers. The registered buyer shall be required to pay GST on monthly basis and avail ITC as per applicable provisions.
- Rate of GST shall be the rate as applicable on sale of metal scrap (presently 18%).
- Other information
- Self-Invoicing: Registered Buyers must issue a self-invoice within 30 days of receiving the supply.
- NO TDS ON UNREGISTERED SUPPLIERS: TDS Provisions do not apply to Purchases from unregistered supplier.
Renting of Commercial Property by unregistered dealer to registered dealer
- Any registered taxpayer who has taken any property other than residential property on rent from unregistered person shall be liable to pay GST under RCM on rent paid to such unregistered person. The registered taxpayer shall be required to pay GST on monthly basis and avail ITC as per applicable provisions.
- Rate of GST shall be 18%.
- Other information
- Self-Invoicing: Registered Buyers must issue a self-invoice within 30 days of receiving the supply.
TDS on Metal Scrap
- Every registered taxpayer who is buying metal scrap (Chapter 72 to 81 of Customs Tariff) from another registered taxpayer shall be liable to deduct Tax at source (under GST Law).
- Rate of TDS: Rate of TDS- 2% of taxable value (1%CGST and 1% SGST for intra-state transactions or 2% IGST for interstate transactions.
- Other Information:
- Threshold: TDS applies only if the total contract value exceeds Rs. 2.5 lakh.
- Filing and Compliance:
- Buyers must register for TDS through Form GST REG-07;
- File TDS returns in GSTR-7 by the 10th of following month and issue GSTR-7A certificates to suppliers;
- The TDS credit will be available to the supplier via their cash ledger , which they can use for offsetting GST liabilities.
