One of client is a scrap dealer.He is purchasing from local urd . whether he has to pay RCM on the said purchases, please reply.

Reply— 

Section 9(4) of CGST Act — Provision of section 9(4) of CGST Act, i.e. Reverse charge mechanism in case of purchases made from unregistered person (amount more than Rs. 5000/-) was operative upto 12.10.2017. As per notification No. 38/2017 CT (Rate) dated 13-10-2017, all supplies from unregistered person are exempted without any threshold limit. 

The subsequent Notifications no. 22/2018-Central Tax (Rate) dated 06-08-2018 has extended the exemption from tax liable under the reverse charge basis under section 9(4) till 30-09 2019. This notification has been rescinded by CBIC

And as per CGST (Amendment ) Act, 2018, provision of section 9(4) has been amended and now Reverse charge is not applicable on all inward supplies received from Unregistered supplier.