RCM supply

[VIGNESH]

sir there are two terms used under RCM applicable for services and they often create little confusion. ' Any business entity located in the taxable territory', 'A registered person, located in the taxable territory'. what do these two terms indicate! why they are interchangeably used!

AI Summary

Clarification on GST Reverse Charge Mechanism: 'Business Entity' vs. 'Registered Person' Terms Explained by Experts In a discussion forum on Goods and Services Tax (GST), a query was raised about the interchangeable use of the terms 'any business entity located in the taxable territory' and 'a registered person, located in the taxable territory' under the Reverse Charge Mechanism (RCM). Kasturi Sethi clarified that both terms relate to entities involved in business within a taxable territory, where RCM applies only if specific conditions are met. The terms are used based on specific GST notifications. Ganeshan Kalyani agreed with Kasturi's explanation, supporting the interpretation provided.