Reverse charge mechanism shifts tax liability to recipient for specified supplies and unregistered procurements, requiring recipient to pay and account.
Reverse charge under GST makes the recipient liable to pay CGST/SGST or IGST for specified notified supplies and for taxable procurements from unregistered suppliers exceeding the statutory per-day threshold; the recipient must account for tax in returns, cannot discharge RCM liabilities under the composition scheme, and must follow prescribed time-of-supply rules with fallback to book entries, while notified categories of goods and services and practical compliance issues (territorial registration, reimbursements, invoicing and input credit conditions) define operational scope. (AI Summary)