What reverse charge means
Under reverse charge, the recipient (not the supplier) is liable to pay GST on notified supplies. Payment is made in cash via the electronic cash ledger (ITC generally cannot be used to pay RCM liability).
Reverse charge
GST reverse charge mechanism: notified supplies, self-invoice, and ITC.
Common notified categories
Examples historically include specified services from unregistered suppliers in certain cases, GTA (where applicable), legal services by advocates, sponsorship, and notified goods. Always check the current notification list, as it changes.
Self-invoice and payment voucher
Where the supplier is unregistered, the recipient may need to issue a self-invoice and a payment voucher as prescribed.
ITC on RCM
Tax paid under reverse charge is generally available as ITC subject to section 16 conditions and blocked credit rules, once paid and reflected appropriately.
Related: ITC · Invoicing · Returns
This material is for general information. It is not a legal opinion. Verify due dates and rates on the GST portal and CBIC notifications before acting.