GST PRESENTATION

Study of Reverse Charge

Mechanism under GST
Regime
APPLICABILITY
 Supplyfrom an Unregistered dealer to a
registered dealer
 Services through an E-Commerce Operator
 Supply of certain goods and services
specified by CBEC
(Central Board of Excise and Customs)
 Time of Supply Under
GST

In Case of In Case of
Goods Services
 Forward Charge Reverse Charge

1. Meaning  Mechanism where supplier of  Receiver of service will be liable

to pay GST.
goods is liable to pay tax

 All the people required to pay tax

2. Registration  Registration is required once a under RCM have to register
supplier meets the threshold themselves for GST irrespective
limit. of threshold.

 A supplier can also be a

3. Supplier  A supplier can only be a registered supplier in case of
registered supplier. An supply of notified goods or
unregistered supplier cannot services.
collect tax.

4. Recipient  A recipient can be a registered  A recipient should be registered

or an unregistered person. in RCM.
INPUT TAX CREDIT
RELEVANT UPDATES
 28th May, 2018 – Priority Sector Lending Certificate included under
Reverse Charge Mechanism.

 6th August, 2018 – RCM deferred to 30th September, 2019 (in case of
supplies made by unregistered person to registered persons0

 ITC cannot be used to pay output tax, which means that payment
mode is only through cash under RCM.
CASE STUDY : SWEDEN