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
1. Meaning  Mechanism where supplier of
goods is liable to pay tax
2. Registration  Registration is required once a
supplier meets the threshold
limit.
3. Supplier  A supplier can only be a
registered supplier. An
unregistered supplier cannot
collect tax.
4. Recipient  A recipient can be a registered
or an unregistered person.
Reverse Charge
 Receiver of service will be liable
to pay GST.
 All the people required to pay tax
under RCM have to register
themselves for GST irrespective of
threshold.
 A supplier can also be a registered
supplier in case of supply of
notified goods or services.
 A recipient should be registered 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