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Reverse Charge Mechanism in GST

Understanding when recipient must pay GST under reverse charge mechanism.

GetYourCA Team
1 March 2025·Updated 9 April 20261 min read12.5K views

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.

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GetYourCA Team

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Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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