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rcm

Partner

Whether a practicing doctor when make purchases from URD liable to RCM even if he does not come under GST. (Turnover is above 20lacs).
 
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Dear Sir Applicablity of GST on doctors- Doctors are exempted from the ambit of the GST if they are providing- 1. Health care services by a clinical establishment, an authorized medical practitioner.
 
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Partner

Now if he makes purchases from urd- still RCM is not applicable ?
 
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Proprietor

SIR IF GST IS NOT APPLICABLE TO HIM THAN IT IS OBVOIUS RCM WILL BE NOT APPLICABLE 

 
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In my opinion, Doctors will be liable under Reverse Charge Mechanism if they purchase goods from unregistered dealers.

 
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It would depend on the goods/services availed by the doctor from the unregistered dealer.

If the goods/services availed are exempted from levy of GST, then Reverse Charge Mechanism would not apply. However, if the goods/services are not exempted, then the Reverse Charge Mechanism of GST would apply.

In the above query, it has not been mentioned that the supply is of what type of goods/services. You can apply this analogy to determine if the goods/services would be exempted from levy of Reverse Charge or not.

 
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ADVOCATE HIGH COURT OF KERALA

Health care services by a clinical establishment, an authorised medical practitioner or para-medics have been exempted from GST.

This means that a doctor falls under exempted category and he need not be a 'registered person' under GST Act

  Further sub section 4 of Section 9 of the CGST Act says that , " the central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient .......".

Thus it is clear that the burden to pay tax under RCM arises only if the recipient is a registered person. So purchasing from an URD doesnot make the Doctor liable under RCM as he is not a registered person under the Act. Nature of supply whether it is exempted or not is insignificant.

 

 
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