What is reverse charge? When should I opt for reverse charge on my expenses?
If you’re purchasing goods or services from a supplier who is not registered under GST, you will be liable to pay the GST associated to the transaction (instead of the supplier collecting and paying it). This method of tax collection is known as the reverse charge.
You can opt for reverse charge on your expenses in following cases:
- Expense is incurred with an unregistered merchant.
- Import of goods and/or service.
- Service offered through an aggregator (e-commerce)