gst reverse charge mekanisam

What is reverse charge?

Typically, taxes are collected by business owners on behalf of the customers, which is then paid to the government. Reverse charge is when the buyer pays the tax directly to the government. 


When is reverse charge applicable?

Reverse charge is applicable on both, goods and services. The following are the situations in which reverse charge will be applicable: 

A registered business owner receiving goods or services from an unregistered vendor. Example: A registered wholesaler or a retailer buying farm produce (for the purpose of selling it to other vendors/consumers) from unregistered vendors, has to pay the GST associated with the purchase to the government.

Services offered by an aggregator or e-commerce operator.


Note:
Only SECTION 9(4) i.e. Purchase from Unregistered Dealer is suspended till 30.09.2019.

SECTION 9(3) i.e. REVERSE CHARGE MECHANISM on Notified Cases such as Legal Services, GTA etc is in full force. This particular SECTION is not deferred.

limit of bill value or which bill is applicable for the reverse charges
value limit of bill for reverse charge

Originally posted by : Tonmoy Dalal
	limit of bill value or which bill is applicable for the reverse chargesvalue limit of bill for reverse charge

Read attached file for understanding RCM