Reverse Charge Mechanism (RCM)- Definition under GST

Reverse Charge Mechanism

As per Section 2(98) of the CGST Act, 2017, “Reverse Charge” means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act;

Source: Central Goods & Services Tax Act, 2017