Sep 16, 2023
Reverse Charge Mechanism under GST: Applicability and Key Insights
Have you ever wondered about the Reverse Charge Mechanism (RCM) in the world of Goods and Services Tax (GST)? It pertains a little bit to flipping the script on how tax payments work. Instead of the supplier being responsible for paying the tax, the burden shifts to the receiver. Let's delve into this concept, where the one who gets the goods or services becomes the one who foots the tax bill. The Reverse Charge Mechanism comes into play under three specific scenarios: firstly, for imports; secondly, when you make a purchase from an unregistered seller; and finally, in the case of supplying goods and services that have been notified under this mechanism.