📢 𝗚𝗢𝗜: 𝗜𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝗲𝘀 𝗥𝗲𝘃𝗲𝗿𝘀𝗲 𝗖𝗵𝗮𝗿𝗴𝗲 𝗠𝗲𝗰𝗵𝗮𝗻𝗶𝘀𝗺 𝗳𝗼𝗿 𝗠𝗲𝘁𝗮𝗹 𝗦𝗰𝗿𝗮𝗽 𝗧𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀 Unregistered Persons vs. Registered Buyers (GST)

🔍 𝗙𝗮𝗰𝘁𝘀: The Government of India issued Notification No. 06/2024-Central Tax (Rate) on 8th October 2024, introducing an amendment under the Central Goods and Services Tax (CGST) Act, 2017. This amendment applies to the sale of metal scrap (under headings 72, 73, 74, 75, 76, 77, 78, 79, 80, or 81) by unregistered persons.

The tax liability will now shift to the registered person (buyer) under the reverse charge mechanism for metal scrap purchases from unregistered sellers.

⚖ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The amendment inserts a new entry, S. No. 8, into the 2017 notification, ensuring that the registered buyer will be responsible for paying the GST. This adjustment is meant to improve compliance and streamline tax collection in the metal scrap sector, making the buyer accountable for GST even when the seller is not registered.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: 𝗡𝗼𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗡𝗼. 06/2024-Central Tax (Rate) 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 8th October 2024 𝗘𝗳𝗳𝗲𝗰𝘁𝗶𝘃𝗲 𝗗𝗮𝘁𝗲: 10th October 2024

This change highlights the government's focus on ensuring tax compliance in sectors where unregistered sellers are prevalent by placing the tax burden on registered buyers under the reverse charge mechanism.