Reverse Charge Mechanism in GST: When It Applies

Under reverse charge, the recipient of supply pays GST instead of the supplier. The most common triggers are: legal services from an advocate, renting a motor vehicle from an unregistered person, GTA where the supplier is an individual/HUF/unregistered transporter, and security services from any supplier. For GTA, you can avoid RCM by hiring a registered transporter. For renting, you can avoid RCM by hiring a registered landlord. In every case where RCM applies, the recipient must self-invoice the supplier, declare the tax in Table 3.1(d) of GSTR-3B, and may claim ITC only after the supplier files their return.