Most asked questions from the Government on GST.

Levy of and Exemption from Tax

Question 9 & 10

Q 9. What is meant by Reverse Charge?

Ans. It means the liability to pay tax is on the recipient of supply of goods and services

 instead of the supplier of such goods or services in respect of notified categories of supply.

Q 10. Is the reverse charge mechanism applicable only to services?

Ans.   No, reverse charge applies to supplies of both goods and services,

as notified by the Government on the recommendations of the GST Council.

Notification no. 4/2017Central Tax (Rate) and 13/2017(Rate) both dated 28/06/2017 have been i Central Tax ssued.

Similar notifications have been issued under IGST Act also.

Reverse charge also applies to supplies received by a registered person from unregistered persons.

However, the provision of reverse charge liability on supplies received from unregistered persons,

as provided in sections 9 (4) and 5 (4) of the CGST Act and the IGST Act respectively, have been kept in abeyance till 31.03.2018.