reverse charge

Reverse charge means receipents have pay tax

in sumple term reverse charge mean burden liabilities to pay goes on receipt of good and services.

there are many area where government cannot directoly collact the tax from suppliers so government collect the tax from receiptent.receipts can avail the credit of tax pay under reverse charge

Area RCM

1.import of services
2.suppies made by unregistered person to register
3.conveyance fees of lawyer
4.services provided by tribunal etc.

RCM means recepient have to pay tax. In normal case, supplier who supply goods and services pays the taxes.

In normal case , supplier has to pay the tax, but in some cases the receiver has to pay the tax and he can claim the gst for that payment. This is called RCM. when you supply goods to an unregistered dealer then the RCM is applicable, you have to pay the tax directly to the govt and can claim ITC for that.