Question

Under GST, the 'Reverse Charge Mechanism' (RC

  • M implies that the tax is paid by:
A The supplier of goods or services. Correct Answer Incorrect Answer
B The recipient of goods or services. Correct Answer Incorrect Answer
C The GST Council. Correct Answer Incorrect Answer
D The Central Government. Correct Answer Incorrect Answer

Solution

Normally, the supplier of goods/services is liable to pay GST. Under the Reverse Charge Mechanism (RCM), the liability to pay tax is shifted from the supplier to the recipient of the goods/services. This is applicable in specific cases notified by the GST Council.

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