Reverse Charge Provision Under GST and RCM on Goods

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Under the normal provisions of GST, a supplier of goods and services is taxable person liable to pay tax on such supplies. However, in certain cases specifically provided by law, the recipient of such supplies is liable to discharge such tax liabilities on such supplies. This is the concept of Reverse Charge Mechanism(RCM).


Below is the pictorial representation on the difference between Normal GST and RCM:



Notified Goods under Charge Mechanism – Section 9(3) of the CGST Act/section 5(4) of the IGST Act:



Description of Supply of GoodsSupplier of GoodsRecipient of Goods
1Cashew nuts, not shelled or PeeledAgriculturistAny Registered person
2Bidi wrapper leaves (Tendu)AgriculturistAny Registered person
3Tobacco LeavesAgriculturistAny Registered person
4Silk YarnAny person who manufactures silk yarn from raw silk or silk worm cocoons for supply of silk yarnAny Registered person
5Raw CottonAgriculturistAny Registered person
6Supply of LotteryState Government/Union Territory or any local AuthorityLottery Distributor or Selling Agent.
7Used vehicles, seized and confiscated Goods, Old & Used Goods, Waste & ScrapCentral Government, Sate Government, Unions Territory or Local AuthorityAny Registered person
8Priority Sector Lending CertificateAny Registered PersonAny Registered person






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Composite v/s Mixed Supply