Usually the seller collects GST. Under reverse charge, the buyer pays it directly. Here's when that flips, in plain terms.
Normally the supplier charges and deposits GST. Under the Reverse Charge Mechanism (RCM), the recipient pays GST directly to the government instead. It applies to specific notified supplies and some purchases from unregistered suppliers.
If RCM applies to a purchase, you self-account for the GST in your returns and can usually claim it back as input credit, subject to the rules. It's a paperwork step, not necessarily a cost.
RCM amounts go in specific fields of your GST returns. Keep a list of recurring RCM purchases so nothing is missed.
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💬 Talk to our team View plans →A mechanism where the buyer, not the seller, pays GST to the government on certain notified supplies.
Usually yes, subject to eligibility rules — but you must self-account for it correctly first.
Only for specific notified supplies and certain purchases. Identify which of your purchases attract RCM.
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