Glossary
RCM
Reverse Charge Mechanism
Reverse Charge Mechanism is a scenario under GST where the recipient of the goods or services is liable to pay the tax directly to the government instead of the supplier, shifting the typical tax liability.
Where it appears in practice
It applies to specific services like transport, legal, and sponsorship.
A worked example
A registered business hires a goods transport agency. Under RCM, the business (recipient) pays the GST directly rather than the transporter.
Related terms
Let the practice handle it
This term sits inside real compliance work — returns, filings, and deadlines. That work is one of the services the practice runs end to end.
GST Advisory