TMI BlogReverse Charge Mechanism in GST- Basic Section 9X X X X Extracts X X X X X X X X Extracts X X X X ..... What is the reverse charge Mechanism Generally, the supplier of goods or services is liable to pay GST. Reverse Charge Mechanism (RCM) means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply. The objective of shifting the burden of GST payments to the recipient is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST Act. Section 22 provides for exemption from registration when aggregate turnover does not exceed Rs. 20 lakhs. section 23 of CGST act provides for exemption from registration to those who are exclusively engaged in supply of goods or services or both which are not liable too tax or are wholly exempt. Person who are exempt from registered under section 23 of CGST Act are not required to regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n such services, on which he is liable to pay GST under RCM, only after making payment of that tax in his E-cash ledger. A supplier cannot take ITC of GST paid on goods or services used to make supplies on which recipient is liable to pay tax. 3. Time of Supply when GST on goods or services payable on RCM basis The Time of supply is the point when the supply is liable to charge GST. O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Furnishing detail in GSTR-1:- Invoice level information in respect of all supplies attracting reverse charge, rate wise, are to be furnished separately in the table 4B of GSTR-1. 6. RCM applicable on advance payment for reverse charge supplies:- Advance paid for reverse charge supplies is also leviable to GST. The person making advance payment has to pay tax on reverse charge ..... X X X X Extracts X X X X X X X X Extracts X X X X
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