GST RCM Not Applicable to Traders of M-Sand and Bricks: AAR

The Applicant, M/s. Amman Blue Metals trades M-sand, P-sand, Blue Metal, Boulders, Hollow Bricks and other related products. They buy these goods from unregistered persons within the state. The applicant filed an application to seek an advance ruling on the following questions:

“i. Whether the purchase of following goods from unregistered person are liable to reverse charge mechanism as per Section 9(3) or 9(4) of the CGST Act, 2017
a. HSN 25061020-M-Sand & P-Sand,
b. HSN 25171010 Boulders,
C. HSN 25171010 – Blue Metals & Bricks,
d. HSN 68101110 Hollow Bricks

ii. Whether the goods notified under Section 9(3) specifically excludes the above-mentioned goods purchased from unregistered person

iii. Whether the amended Section 9(4) excludes the applicant to pay tax under reverse charge mechanism for purchase of the above-mentioned goods from unregistered person.”

As per the Tamil Nadu Authority for Advance Ruling:

• The purchases from unregistered persons of M-Sand, P-Sand, Boulders, Blue Metals, Bricks, and Hollow Bricks do not attract the Reverse Charge Mechanism under Section 9(3) or 9(4) of the CGST Act, 2017.
• The goods under section 9(3) are excluded from the list of above items notified for RCM within the state.
• The revised Section 9(4) does not apply to the applicant unless the applicant’s nature of business continues to be a trader and not a promoter.