No matter if you are a customer or a business owner, you have undoubtedly heard of and paid the Goods and Services Tax (GST). The breadth and complexity of GST may make it challenging for some people to comprehend the notion. In order to navigate GST, you must be familiar with all of its connected words. The RCM
portal
under GST is one such crucial idea.
Learn more about such legalities as RCM payment in the GST portal by consulting the legal experts of NoBroker.How to pay RCM in GST portal?
Reverse Charge Mechanism (RCM) is the full name for this type of GST payment method, where the supplier is required to discharge the tax responsibilities rather than the recipient. The RCM, or Reverse Charge Process, is a GST mechanism that switches the roles of the provider and the recipient in terms of paying the GST. In the conventional system, the receiver pays the supplier, who then pays the government, the GST. However, in the case of Reverse Charge, the receiver pays the government the GST directly, as opposed to the supplier. This mechanism is applicable to specific circumstances, goods, and services that the government has identified. Reverse Charge in GST refers to the amount of GST that the recipient must pay to the government directly rather than through the supplier because, in those circumstances, the government has designated certain goods or services as falling under the Reverse Charge Mechanism.
How do you calculate and how to pay GST on RCM?
A reverse charge is not one that can be calculated in general; it is a method where the person receiving the goods is responsible for paying the tax to the state rather than the provider of the goods.
How to pay RCM challan in GST?
Receivers of goods, services, and supplies that are subject to RCM are required to pay the GST directly to the state using Form GSTR-3B at the standard tax rates.
To settle the GST owed to RCM, recipients must submit GSTR-3B Table 3.1 D.
The RCM transaction information and the GSTR-3B form must be submitted on a monthly basis via the GST Portal, and the RCM taxes can only be settled by using Electronic Cash ledger.
In table-4A of GSTR-3B for the same month, customers can later claim the ITC on certain transactions.
I hope now you know about RCM
portal and how to pay RCM in GST portal.
Read More: What Is The Limit For RCM Under GST? What Is The Late Fee For GST Return?
How to Pay RCM in GST Portal?
Japneet
3839 Views
1
2 Year
2022-07-29T22:56:54+00:00 2023-08-09T11:27:22+00:00Comment
Share