Reverse Charge Mechanism (RCM) means the liability to pay the tax by person receiving goods and/or services instead of the person supplying the goods and/or services in respect of specified categories of supplies.
GST being One Nation One Tax is famous for the free flow of credits. But there are certain items on which Input Tax Credit is unavailable to the taxpayer.
There is a provision of inspection which acts as a deterrent for tax evasion. These provisions help restricting tax evaders gain the unfair advantage over authentic tax payers.
Transitional Provision rules, to avail CENVAT Credit, it is important that the person who is willing to take credit is registered under GST and is not a composition dealer as specified under section 10 of COST Act, 2017.
As we know Goods and Service Tax (GST) will 100% be implemented on 01-07-2017. Here are some point which help you to understand the whole concept of GST.
GST is a Value-added Tax (VAT) is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level.
GST is expected to be implemented from 01/07/2017. GST would apply to all goods and services except Alcohol for human consumption.