The Tamil Nadu Authority for Advance Ruling (AAR) has held that the purchase of construction materials such as M-sand, P-sand, Blue Metals, Boulders and Hollow Bricks from unregistered suppliers is not liable to tax under reverse charge provisions of Section 9(3) or 9(4) of the Central GST Act, 2017.

The bench of  C. Thiyagarajan (Member – CGST) and B. Suseel Kumar (Member – SGST), concluded that M-sand, P-sand, Blue Metals, Boulders and Hollow Bricks  are neither covered under the list of goods notified for reverse charge under Section 9(3), nor does the activity of the applicant fall within the amended provisions of Section 9(4).

The applicant, M/s Amman Blue Metals is engaged in the wholesale and retail trading of the M-Sand, P-Sand, Boulders, Blue Metals, Bricks, Hollow Bricks and other related products. They purchase these goods from unregistered persons within the state. They had raised query in their application as to whether Section 9(3) specifically excludes the said goods. After the amendment of Section 9(4) of the CGST Act, 2017 vide CGST (Amendment) Act, 2018, it is not clear whether they are covered under the class of persons mentioned in the amended Section. 

The applicant sought the advance ruling on the issue whether buying these raw materials from unregistered persons within the State would attract liability under reverse charge.

The AAR held that purchases of M-Sand, P-Sand, Blue Metals, Boulders and Hollow Bricks from unregistered suppliers are not liable to GST under reverse charge. The goods notified under Section 9(3) exclude these items. Under the amended Section 9(4), liability under reverse charge arises only if the recipient is a promoter engaged in specified activities. Since the applicant is a trader and not a promoter, the provision does not apply.

Ruling Details

Applicant’s Name: M/s. Kasinathan Rupa

Ruling Date: 18/08/2025

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