RCM NEW RULE

No new rule for RCM..

Reverse charge is a mechanism under which the recipient of the goods or services is liable to pay the tax instead of the provider of the goods and services. Under the normal taxation regime, the supplier collects the tax from the buyer and deposits the same after adjusting the output tax liability with the input tax credit available. But under reverse charge mechanism (RCM), liability to pay tax shifts from supplier to recipient.

28th GST council meeting deferred the Reverse Charge Mechanism law till September 2019.

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.

one new service has been added recently and that is security service and RCM made applicable on this service as per 31st GST council meeting.

when we purchase from.unregistered supplier or seller of goods.Rcm.is applicable but its not now applicable .In Rcm The purchaser deposit the tax liability to the government instead of paying it to the Supplier of goods