Ministry of Finance has issued Notification No. 06/2024-Central Tax (Rate) on 8th October 2024, amending the Central Goods and Services Tax (CGST) rates under section 9(3) of the CGST Act, 2017. The notification introduces changes to the reverse charge mechanism (RCM) for metal scrap transactions. Specifically, under the new amendment, unregistered persons selling metal scrap (falling under categories 72, 73, or 81) will be subject to the reverse charge, meaning the registered buyer will be responsible for paying the GST instead of the seller. This change aims to streamline compliance for scrap dealers and manufacturers. The updated rule will come into effect on 10th October 2024. This notification amends the original Notification No. 4/2017-Central Tax (Rate) published on 28th June 2017, with the last amendment made in October 2023. The update impacts the scrap metal industry and clarifies the tax liability between registered and unregistered parties.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 06/2024-Central Tax (Rate) | Dated: 8th October, 2024
G.S.R. 614(E).— In exercise of the powers conferred by sub-section (3) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), notification No. 4/2017-Central Tax (Rate), published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i), vide number G.S.R. 676(E), dated the 28th June, 2017, namely:-
In the said notification, in the Table, after S. No. 7 and the entries relating thereto, the following S. No. and entries shall be inserted, namely: –
2. This notification shall come into force on the 10th day of October, 2024.
| (1) | (2) | (3) | (4) | (5) |
| “8. | 72, 73, 74, 75, 76, 77, 79, 80 or 81 | Metal scrap | Any unregistered person | Any registered person”. |
[F. No. CBIC-190354/149/2024-TO(TRU-II)]
AMREETA TITUS, Dy. Secy.
Note: – The principal notification No. 4/2017-Central Tax (Rate) was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 676(E), dated the 28thJune, 2017 and was last amended by notification No. 19/2023-Central Tax (Rate), dated the 19th October, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 780(E), dated the 19th October, 2023.
I am registered as compoistion dealer
i am purchasing scrap from unregistered dealers and selling to unregister dealers is RCM Applicable on composition dealers