RCM applicable on supply of mentha oil by unregistered person to registered person
Section 9(3) & Section 9(4) of the CGST Act, 2017 empowers the Government to levy GST under reverse charge mechanism. In the 45th meeting of GST Council held on 17th September 2021, a levy of GST under reverse charge mechanism on mentha oil was recommended by the Council. Therefore, the CBIC issued Notification No. 10/2021- Central Tax (Rate) dated 30th September 2021 (by amending Notification No. 04/2017- Central Tax (Rate) dated 28th June 2017) notifying RCM applicability on supply of mentha oil by an unregistered person to a registered person.
For the said purpose, In the Reverse Charge Notification for goods, in the Table, after S.No. 3 and the entries relating thereto, the following serial number and the entries shall be inserted, namely:
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S. No. |
Tariff item, sub-heading, heading, or chapter |
Description of supply of goods |
Supplier of goods |
Recipient of supply of goods |
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“3A |
33012400, 33012510, 33012520, 33012530, 33012540 |
Following essential oils other than those of citrus fruits namely: (a) Of peppermint (Mentha piperita); (b) Of other mints: Spearmint oil (ex-mentha spicata), Water mint-oil (ex-mentha aquatic), Horsemint oil (ex-mentha sylvestries), Bergament oil (ex-mentha citrate) |
Any unregistered person |
Any registered person |
The effect of this Notification is that the supply of above-mentioned mentha oil by an unregistered person to a registered person shall now be taxable under RCM under section 9(3) of the CGST Act, 2017.
This Notification shall be effective from October 1st, 2021.
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Refer following Notifications:
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Disclaimer: The above article is based upon the Notification issued by CBIC and is intended only for educational purposes. Readers are requested to act diligently and under the consultation of any professional while applying the information contained in this article.
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