Reverse Charge Mechanism (RCM) under Goods and Services Tax

As we embark to discuss the reverse charge under the Goods and Services Act, it is important to understand the mechanisms responsible for levying tax under the Act. Basically, GST subsists in two ways by which the tax liability is defined in a transaction, these are mainly the Forward Charge Mechanism and the Reverse Charge Mechanism. Whereas, considering the Reverse Charge Mechanism, the statutory liability to bear the same lies on the recipient of goods and services. List of services taxable under reverse charge; Services by,i. ConclusionThe Reverse Charge Mechanism under the Goods and Services Act plays a vital role in curbing the fallacies of tax leakage and evasion.