Rcm concept in gst

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Querist : Anonymous

Querist : Anonymous (Querist)

01 June 2017 Dear Experts,
we do aware abour RCM concept in Service tax. plz tell me in GST is there any provision of RCM if yes when and how it will be applicable,

Thanks
Chanchal

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 June 2017 See the link.
http://taxguru.in/goods-and-service-tax/reverse-charge-mechanism-gst.html

Guest

Guest (Expert)

01 June 2017 See my video to understand RCM in GST https://youtu.be/L11cxluHOIc

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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20 July 2025 Great question! Yes, Reverse Charge Mechanism (RCM) is very much a part of the GST system, and it works a bit differently but carries forward some concepts from service tax times.

What is RCM under GST?
Under GST, Reverse Charge Mechanism means that the liability to pay tax is on the recipient of goods or services instead of the supplier.

When is RCM applicable in GST?
Specific notified goods and services: The government has notified certain goods and services on which RCM is applicable. For example:
Services provided by a goods transport agency (GTA)
Legal services provided by advocates or firms
Services provided by an individual advocate or firm to a business entity
Services of sponsorship
Services supplied by unregistered suppliers to registered recipients (above threshold limits)
Others as notified from time to time
Unregistered suppliers supplying services to registered recipients: If a registered person receives services from an unregistered person and the service is taxable, the recipient has to pay GST on reverse charge basis.
Intra-state supply of certain notified services: Like works contract services, services provided by any person to government, local authority, etc.
How is RCM implemented in GST?
The recipient registers under GST (if not already registered).
Recipient is liable to pay GST on the inward supply under reverse charge.
The recipient can claim input tax credit (ITC) on the tax paid under reverse charge, subject to normal ITC rules.
The recipient discloses RCM details while filing GSTR-3B and GSTR-1 returns.

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