Reverse Charge Mechanism (RCM) is applicable in the following cases:
- Supply of goods or services by an unregistered dealer to a registered dealer.
- Purchase of goods or services from an unregistered dealer by a registered dealer.
- Supply of specified goods or services as notified by the government, irrespective of the registration status of the supplier.
In these cases, the recipient of the goods or services is liable to pay the tax under RCM, instead of the supplier.
