Indian Company Master Data Made Simple

Reverse Charge Mechanism (RCM)

3 min read

Quick Summary

Under RCM, the recipient of goods/services pays GST directly to government.

RCM applies to specified goods/services and supplies from unregistered dealers. Recipient pays GST and can claim ITC if used for taxable supplies. Monthly reporting in GSTR-3B required.

Key Points

  • Recipient pays GST
  • For specified supplies
  • Can claim ITC
  • Reported in GSTR-3B
  • Applicable to imports