In the light of several changes in Reverse Charge Mechanism (RCM) like RCM on Residential Flat or RCM on renting of vehicle by corporate.
Lets understand the basic about RCM [ A 🧵]
#RCM #gst #incometax #gstcouncil @PratibhaGoyal @TaxationUpdates @caanuragwriter #company
Lets understand the basic about RCM [ A 🧵]
#RCM #gst #incometax #gstcouncil @PratibhaGoyal @TaxationUpdates @caanuragwriter #company
Reverse charge is a mechanism where the recipient (buyer) of the goods or services is liable to pay GST to the government instead of the supplier.
Typically, the supplier of goods or services pays the GST on supply.
Under the reverse charge mechanism (RCM), the recipient of goods or services becomes liable to pay the GST, i.e., the chargeability gets reversed.
Under the reverse charge mechanism (RCM), the recipient of goods or services becomes liable to pay the GST, i.e., the chargeability gets reversed.
When is Reverse Charge (RCM) Applicable?
Reverse charge is applicable in the following cases:
a. Supply of specific goods or services notified by government [section 9(3)] eg: Lawyers, Transporter
Reverse charge is applicable in the following cases:
a. Supply of specific goods or services notified by government [section 9(3)] eg: Lawyers, Transporter
b. When registered person purchase goods or services from unregistered person [section 9(4)] eg: Real Estate developer.
c. Supply of services through an e-commerce operator [section 9(5)]
c. Supply of services through an e-commerce operator [section 9(5)]
Normal Charge Mechanism vs Reverse Charge Mechanism [End of 🧵] 
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