RCM Full Form In GST, What Does RCM Stand For?
What Is The Full Form Of RCM In GST?
RCM full form in GST is Reverse Charge Mechanism. RCM actuall is a provision under the Goods and Services Tax (GST) regime in India that requires the recipient of goods or services to pay GST on such supplies, instead of the supplier. The RCM applies in cases where the supplier is not registered under GST or is not eligible to collect GST from the recipient. Under normal circumstances, the supplier of goods or services is required to collect GST from the recipient and deposit it with the government. However, in cases where the supplier is not registered or not eligible to collect GST, the burden of paying GST shifts to the recipient. This is known as the reverse charge mechanism.
What Else Should You Know About Reverse Charge Mechanism?
Under the GST regime in India, all supplies of goods and services are subject to GST, unless they are specifically exempted. The GST is collected by the supplier of goods or services, who is responsible for depositing it with the government. This helps to ensure that GST is paid on all supplies of goods and services, and helps to reduce tax evasion.