GST under RCM when raw cotton is supplied by a farmer via a Kacha Arhtiya

In re Bansal Industries (GST AAAR Punjab) The GST AAAR Punjab has delivered a landmark ruling on Bansal Industries, examining the applicability and interpretation of the Notification no. 43/2017-Central Tax (Rate). This judgement sheds light on the contentious issue of who bears the responsibility of tax payment under the Reverse Charge Mechanism (RCM) when raw cotton is supplied by a farmer via a Kacha Arhtiya. The ruling analyses the work carried out by the Kacha Arhtiya, the definitions of terms like ‘supplier’, ‘Agriculturist’, ‘recipient’, and ‘re...