Definition of Agriculturist –
Section 2(7) of the CGST Act defines “agriculturist” means an individual or a Hindu Undivided Family who undertakes cultivation of land—
- by own labour, or
- by the labour of family, or
- by servants on wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family;
Thus, any registered person purchasing these specified goods from the specified suppliers is required to pay the tax on Reverse Charge
Checkpoints :
1. Verify purchases of goods.
2. Verify accounting of goods.
3. Verify payment to supplier of goods.
4. Verify payment of tax as per the provisions of Section 12(3) of the CGST Act, at the earliest of the following dates –
a) Date of receipt of goods.
b) Date of payment as entered in the books of account of the recipient or the date on which payment is debited in the bank account, whichever is earlier.
c) Date immediately following 30 days of the issue of invoice.
d) Date of entry in books of account if not determined under (a) to (c) above.
5. Verify whether invoice is raised by the Recipient for paying the tax.
6. Verify whether the credit of the tax paid is availed, if eligible or not.