Reverse Charge Mechanism in GST
What is RCM?#
Recipient pays tax instead of supplier.
When Applicable#
- Unregistered supplier
- Specified goods/services
- Imports
- GTA services
Rates#
- Notification specific
- Usually same as regular rate
Compliance#
- Self-invoice
- Pay tax via GSTR-3B
- Claim input credit
Conclusion#
RCM shifts tax payment to recipient.