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GST

Reverse Charge Mechanism

Definition
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What is Reverse Charge Mechanism?

Reverse Charge Mechanism (RCM) is a provision under GST where the recipient of goods or services is liable to pay tax instead of the supplier. RCM applies in specific scenarios such as unregistered suppliers, notified goods and services, or imports from overseas. The recipient must self-invoice, pay GST to the government, and can claim ITC if eligible.

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