TaxTMI 
TaxTMI 
What is the actual benefit to govt on taxes paid under RCM other than presumptive tax payers paying such taxes. There is no loss of revenue when such taxes are not paid.
Thanks & Regards
TAXES UNDER RCM
13 Jun 2020 
6 Replies 
2214 Views Asked by
Reverse Charge Mechanism shifts tax liability to the recipient, increasing registrants and improving revenue visibility and compliance.
Reverse Charge Mechanism under GST shifts tax liability to the recipient for specified supplies, aiming to prevent revenue leakage by bringing transactions from unregistered suppliers into recorded accounts, increasing registrants, and enabling recipients to claim input tax credit where eligible; this expands revenue visibility while producing timing, liquidity and administrative impacts including possible ineligible credits, refund delays, and reduced cash float. (AI Summary)
Reverse Charge Mechanism under GST shifts tax liability to the recipient for specified supplies, aiming to prevent revenue leakage by bringing transactions from unregistered suppliers into recorded accounts, increasing registrants, and enabling recipients to claim input tax credit where eligible; this expands revenue visibility while producing timing, liquidity and administrative impacts including possible ineligible credits, refund delays, and reduced cash float. (AI Summary)