Buyer of raw cotton needs to Pay GST on Reverse Charge basis

By | July 20, 2017
(Last Updated On: July 20, 2017)

Question : Does the buyer of raw cotton (who is a registered person) from the farmer need to pay GST on Reverse Charge basis?

Answer: Yes. As the cotton under heading 5201 and 5203 has been placed under 5% rate and the cotton farmer is not liable to registration, the buyers of raw cotton (who are registered persons) from the farmers are required to pay tax on reverse charge basis as per Section 9 (4) of the CGST Act, 2017.

GST on Textile : FAQ’s

GST on Export : FAQ’s

GST on MSME : FAQ’s

GSTIN / PAN and Invoice information in Shipping Bill

Bond or LUT along with Shipping Bill

Drawback after GST regime

Related Topic on GST

TopicClick Link
GST Acts Central GST Act and States GST Acts
GST RulesGST Rules
 GST FormsGST Forms
GST RatesGST Rates
GST NotificationsGST Act Notifications
GST CircularsGST Circulars
 GST JudgmentsGST Judgments
GST Press ReleaseGST Press Release
GST BooksBest Books on GST in India
GST CommentaryTopic wise Commentary on GST Act of India
GST You Tube ChannelTaxHeal You Tube Channel
GST Online CourseJoin GST online Course
GST HistoryGST History and Background Material
Direct Taxes Ready Reckoner
Service Tax Ready Reckoner
Company Law Ready Reckoner
tax deduction at source
New Books Released on Tax , GST and law

One thought on “Buyer of raw cotton needs to Pay GST on Reverse Charge basis

  1. Pingback: GST on Textile : Free E Book : FAQ's - Tax Heal

Leave a Reply

Your email address will not be published. Required fields are marked *