Inward Supplies Liable for Reverse Charge in GST – A Complete Guide

Understanding the concept of reverse charge mechanism in GST and which inward supplies are liable for reverse charge under GST law.

What is Reverse Charge Mechanism?

Under the reverse charge mechanism, the liability to pay GST shifts from the supplier to the recipient of goods or services. Instead of the supplier paying GST, the recipient becomes liable to pay GST directly to the government.

Supplies Liable for Reverse Charge

• Supply of goods or services by unregistered supplier to registered person
• Import of services
• Specific notified supplies like legal services, GTA services, etc.
• Supply of goods by composition dealer to registered person

Compliance Requirements

Recipients liable for reverse charge must:

• Pay GST within 30 days of invoice date
• File GSTR-3B return
• Maintain proper records
• Issue payment voucher

Input Tax Credit

The recipient can claim input tax credit on GST paid under reverse charge, subject to fulfillment of conditions under GST law.