# Supplies of Goods Taxable under Reverse Charge

The Government has notified specific goods on which tax is payable by the recipient under RCM (Section 9(3) of CGST / 5(3) of IGST).

## Notified Goods under RCM

Supplier	Goods	Recipient
Agriculturist	Cashew nuts (not shelled / peeled), bidi wrapper leaves (tendu), tobacco leaves, raw cotton	Any registered person
State Government / UT / Local Authority	Lottery	Lottery selling agent / distribution agent
Manufacturer	Silk yarn	Any registered person
CG / SG / UT / Local Authority	Used vehicles, seized & confiscated goods, old & used goods, waste & scrap	Any registered person
Registered person	Priority Sector Lending Certificate (PSLC)	Registered person

## Memory Aids

'CBRT' (Cashew, Bidi leaves, Raw cotton, Tobacco) → Agriculturist supplies under RCM.
'Used + Scrap' from Government → RCM in recipient's hands.
PSLC is a banking-sector instrument; trade between two registered banks → RCM.

Worked example

### Example 1

Example 1: A farmer (agriculturist) sells raw cotton worth ₹5,00,000 to a registered textile mill. The textile mill pays GST under RCM.

### Example 2

Example 2: A registered bank purchases PSLCs from another registered bank → recipient bank pays GST under RCM.

### Example 3

Example 3: A municipal corporation auctions confiscated old vehicles to a registered scrap dealer. Scrap dealer pays GST under RCM.

⚠️ Common exam mistakes

Assuming silk yarn RCM applies for traders too — it applies only when supplier is a manufacturer.
Missing that 'cashew nuts' under RCM means unshelled/unpeeled; processed cashew nuts attract forward charge.
Forgetting that agriculturist supplies become taxable in the buyer's hands only when buyer is a registered person.

Reference: Issued u/s 9(3) of CGST Act / 5(3) of IGST Act — Notification No. 4/2017-Central Tax (Rate) dated 28.06.2017 (as amended)

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