9911796707
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 ..... egistered Person" What is the reverse charge Mechanism Under GST 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of section 24(iii) of CGST Act, 2017. * This section 24 override section 22 but not section 23 of CGST Ac, 2017 . * Section 22 provides for exemption from registration when aggregate turnover does not exceed Rs. 20 lakhs. * section 23 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 whol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id for goods or services used to make supplies on which the recipient is liable to pay tax under the Reverse Charge Mechanism (RCM). 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. One of the factors relevant for determining time of supply is the person who is liable to pay tax. In RCM, recipient is lia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shed 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 basis. 7. Self-invoicing is to be done when purchased from an unregistered supplier, and such purchase of goods or services falls under RCM. This is becaus ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
