Reverse charge, explained

Normally the seller collects and pays GST. Under the reverse charge mechanism (RCM), the buyer pays it directly to the government instead.

Common cases

RCM applies to specific notified supplies, such as goods transport (GTA), legal services from an advocate, and purchases from unregistered suppliers in certain situations.

Self-invoice and credit

If you pay tax under RCM, you raise a self-invoice and pay the tax in cash, then claim it back as input credit if you are eligible.