Reverse charge is a mechanism where the recipient of the goods or services is liable to pay Goods and Services Tax (GST) instead of the supplier.

Oct 7, 2020 · What is Reverse Charge? Normally, GST is to be collected by the person who is selling good and services. But in some cases GST is to be collected by the purchaser of goods/service and not by seller. This is called Reverse Charge Mechanism, RCM in short. In some cases of sale through E-commerce operator such as Uber,

Dec 16, 2024 · However, in some cases, Buyer Pays GST Directly to Government. This is called Reverse Charge in GST. Normal Charge. Normally, Seller Collects GST from Buyer and Pays to Government This is called Normal Charge. Example. Suppose A provides Service to B of 100000 + GST 18000. Seller gives Buyer bill without GST.

Feb 13, 2023 · Normally, the supplier of goods or services or both charges and collects the GST from the recipient and deposits the same with Government. However, under the RCM, the liability to deposit tax shifts from the supplier to the recipient.

Nov 15, 2023 · What is RCM full form under GST? The full form of RCM under GST is Reverse Charge Mechanism, where the GST payment process is reversed & instead of the supplier the recipient has to release the tax liabilities.

Dec 26, 2024 · RCM stands for Reverse Charge Mechanism. It is a rule in the GST (Goods and Services Tax) system where the buyer, not the seller, pays the tax to the government. Usually, sellers collect tax and give it to the government, but under RCM, this process is reversed.

Mar 3, 2025 · What is RCM in GST in simple words? The person who receives the goods pays GST to the government instead of the seller. The person who gets the goods must pay the seller for them and send the GST to the government straight.

Jan 3, 2025 · Reverse Charge Mechanism (RCM) is a rule under GST where the buyer (recipient) of goods or services has to pay the GST directly to the government instead of the seller (supplier). How does RCM work? Normally, the seller collects the tax from the buyer and sends it …

What Is The Full Form Of RCM In GST? RCM full form in GST is Reverse Charge Mechanism. RCM actuall is a provision under the Goods and Services Tax (GST) regime in India that requires the recipient of goods or services to pay GST on such supplies, instead of the supplier.

Nov 20, 2024 · Reverse charge 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. There are two type of reverse charge scenarios provided in law. First is dependent on the nature of supply and/or nature of supplier.