Tag: RCM

GST has significantly simplified India’s indirect tax system by creating a unified taxation framework for goods and services. Under normal GST transactions, the supplier collects GST from the customer and deposits it with the government. However, the GST law also contains a special provision known as the Reverse Charge Mechanism (RCM), where this responsibility shifts from the supplier to the recipient. Understanding the Reverse Charge Mechanism under GST is essential for businesses because non-compliance can lead to interest, penalties, denial of Input Tax Credit (ITC), and unnecessary disputes with tax authorities. Many businesses unknowingly become liable under RCM under GST …