GST

The Reverse Charge Instrument (RCM) is a tax accounting mechanism that moves the obligation to pay charges from the provider to the beneficiary of labor and products. RCM is commonly applied in situations where the supplier isn’t expected to be enrolled for charge motivations in the locale, or where the provider’s turnover is under a specific edge. The application of RCM to the supply of goods and services can have distinct implications for businesses and industries.

Section 17(5) of GST is a mandatory requirement that taxpayers must adhere to. This means that at the time of paying tax on output, as a taxpayer you will be eligible to reduce tax liability as you have previously paid tax on the inputs.

E-invoicing impact on operations & GST compliance of small businesses. Department of Revenue announced the fifth phase of e-invoicing by shifting the threshold of 20 crore rupees turnover to 10 crore rupees turnover with effect from 1st October, 2022.