reverse charge mechanism

(3) The Government may, on the recommendations of the Council, by notification,

specify categories of supply of goods or services or both, the tax on which shall be paid on

reverse charge basis by the recipient of such goods or services or both and all the provisions

of this Act shall apply to such recipient as if he is the person liable for paying the tax in

relation to the supply of such goods or services or both.

(4) The central tax in respect of the supply of taxable goods or services or both by a

supplier, who is not registered, to a registered person shall be paid by such person on

reverse charge basis as the recipient and all the provisions of this Act shall apply to such

recipient as if he is the person liable for paying the tax in relation to the supply of such goods

or services or both.

In short:::Subsection 4 is applicable for all the supplies by any unregistered dealer (who cannot charge GST), to a REGISTERED dealer. So liability of GST shifted on RD under RCM.

While Sub-section 3 is applicable over listed supplies. (list of 12 services already declared, but no list of any goods specified till date) Under this, any listed supplies between registered dealers will be under RCM. e.g. GTA