All you need to know about reverse charge under GST.

Under the reverse charge instrument, the weight of the tax is the beneficiary of goods or services or both rather on the provider. As it were, reverse charge implies where the beneficiary of goods or service or the two needs to release the tax risk without anyone else account. Invert charge system under GST is the Reverse representation to the switch charge instrument which was under service tax as is pertinent for the two services and additionally goods.

The motivation behind presenting the reverse charge under the GST law is to expand tax incomes and tax consistency. Beforehand, the administration was not equipped for gathering service tax from a few sloppy parts like the transportation of goods. With this presentation, the tax compliance and accumulations of tax will be expanded.

Circumstances where the reverse charge will apply-

  1. Where an unregistered provider providing to an enrolled individual.

In such a circumstance, the enrolled individual needs to pay GST on the supply of goods or service or both.

      2. Services by means of an internet business administrator.

  • Where an administrator of web-based business supplies taxable services then he will be subject to GST registration and payment of GST under reverse charge.
  • For an occurrence, Ola Cabs gives services of auto leasing and procuring. Ola Cabs is at risk for the installment of GST and to gather the equivalent from its customers rather than the enlisted service suppliers.
  • Where the administrator of the online business (additionally called aggregator) does not have a physical foundation in the taxable domain, at that point any individual speaking to such administrator of internet business for any reason will be obligated for the installment of the tax. On the off chance that there is no delegate of the online business administrator, at that point the internet business administrator needs to choose a man speaking to him for the taxing reason and the agent of the web-based business administrator will be at risk to cover the regulatory expense.


Each individual who has GST registration is required to pay GST under the switch charge system needs to take GST registration paying little mind to as far as possible.

Threshold:- where the yearly turnover in a money-related year surpasses 20 lakhs Rupees (Rupees 10 lakhs for Northeastern and slope states)

Time of supply for goods under reverse charge-

Reverse Charge on account of supply of goods, the season of supply of the goods will be the most punctual of the accompanying dates—

  • The installment date, or
  • The date on which goods are gotten, or
  • The date quickly following 30 (THIRTY) days from the date when the receipt was issued by the provider (if there should arise an occurrence of service 30 days will be supplanted by 60 days)

Where it isn’t practical or not all that conceivable to decide the season of supply of goods under the above conditions (a), (b) or (c), at that point the season of supply of goods will be taken the date of the section in the books of the beneficiary of such goods.

For statement (a)- the installment date will be prior of-

The date of the installment is entered in the books by the beneficiary

Or on the other hand

The date on which the installment has been charged from beneficiary’s financial balance.

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