Section 2(98) of CGST Act: Meaning of “Reverse Charge” Mechanism (RCM)

Section 2(98) of CGST Act: Meaning of “Reverse Charge” Mechanism (RCM)

As per Section 2(98) of the Central Goods and Services Tax (CGST) Act, 2017, unless the context otherwise requires, the term “Reverse Charge” Mechanism (RCM) has been defined, as under:

Section 2(98) of CGST Act: Definition of “Reverse Charge” (CHAPTER I – PRELIMINARY)

“reverse charge” means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act.

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The Central Goods and Services Tax (CGST) Act, 2017 was notified by Govt. on 12 April, 2017 and CBIC has notified the commencement date for various Sections/ Provisions thereof from time to time. Subsequently, Govt. has notified the Central Goods and Services Tax (CGST) (Amendment) Act, 2018 on 30 Aug. 2018. However, commencement date of amended provisions of various Sections is to be separately notified by CBIC, except where specifically mentioned in the CGST Amendment Act, 2018 itself.

Related Posts:

Central Goods and Services Tax (CGST) Act, 2017 (Chapter-wise/ Section-wise)

Section 2 of CGST Act, 2017: Definitions

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