GST--RCM on Purchase of Metal Scrap

FAQs on GST Compliance vis-a-vis RCM and TDS Applicability on Purchase of Metal Scrap

Naitik P. Jhaveri

The learned author seeks to make an overview of GST compliance on applicability of RCM and TDS on metal scrap purchase with the help of some frequently Asked Questions (FAQs).

1. General FAQs on RCM and TDS for Metal Scrap Purchases

Q1. When did the new GST rules on payment of tax or RCM basis on metal scrap purchases come into effect?

A1. The rules, covering RCM for metal scrap, have become applicable from October 10, 2024.

Q2. Which metals are covered by these rules?

A2. Metals covered by Chapters 72 to 81, including iron, steel, copper, aluminum, lead, and more, would fall under these rules.

Q3. Are intra-State and inter-State purchases included?

A3. Yes. CGST and SGST on RCM basis would apply to intra-state purchases, while IGST would applies to inter-state supply.