What is the reverse charge mechanism in GST?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerUnder reverse charge (RCM), the recipient pays the GST instead of the supplier — for specified supplies like goods transport (GTA), legal services from an advocate, director’s fees, and import of services. You pay it in cash and can usually claim it back as input credit.

What RCM is and common cases

The buyer is liable to pay GST: GTA freight, advocate fees, director’s remuneration, sponsorship, and import of services are typical.

Pay in cash, claim ITC

RCM must be paid in cash (not from credit), but you can usually claim it back as input credit in the same period if eligible.

GST

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This answer is general information for businesses, not tax advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.