Reverse charge machanism(rcm)

If goods or services provided are covered under RCM  category, then tax is payable under RCM

As per the provisions of the Central Goods and Services Tax Act, 2017 (CGST Act), RCM is applicable when a registered person receives goods or services from an unregistered person. However, in the case of supply of exempted and zero-rated goods against LUT without payment of tax, the registered person is not required to pay tax at the time of supply.

But, if the registered person who has availed such supply uses it for business purposes, then he would be liable to pay RCM on such supply.