How to differentiate Composition levy with Reverse Charge Mechanism?
What is Composition levy? How does Reverse Charge Mechanism work under GST regime? What are the difference between Composition levy and Reverse Charge Mechanism?
Under GST system, the following information explains about Composition levy and Reverse Charge Mechanism.
As per GST terms, “Reverse charge” means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub- section (3) or sub-section (4) of section 9, or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act.
Composition Scheme Rules under GST provide for all the procedural compliance w.r.t. intimation for Composition Scheme, effective date for levy, conditions and restrictions on levy, validity of levy and rate of tax.
The details about Composition levy and Reverse Charge Mechanism with simple language from GST terms have been mentioned in this web blog separately. I suggest you to read these articles on Composition levy and Reverse Charge Mechanism, so as to enable you to have a clear idea on these shipping terms.
For your immediate reference, we give below web links on Composition levy and Reverse Charge Mechanism separately below. You may kindly read the below links to know more about Reverse Charge Mechanism and Composition levy.
Composition Scheme Rules under GST
Reverse Charge Mechanism Unregistered recipients under GST
The above information easily explains about Reverse Charge Mechanism and Composition levy.
I hope, you have satisfied with the difference between Composition levy and Reverse Charge Mechanism explained above. Do you have different thought on difference between Reverse Charge Mechanism and Composition levy?
Share below your thoughts about Composition levy and Reverse Charge Mechanism
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