Difference between Reverse Charge Mechanism and Non-taxable supply

How to differentiate Non-taxable supply with Reverse Charge Mechanism?

 

What is Non-taxable supply? How does Reverse Charge Mechanism work under GST regime? What are the difference between Non-taxable supply and Reverse Charge Mechanism?

 

Under GST system, the following information explains about Non-taxable supply and Reverse Charge Mechanism.

 

As per GST terms, Non-taxable supply means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act. 

“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.

The details about Non-taxable supply and Reverse Charge Mechanism with simple language from GST terms have been mentioned in this web blog separately. We suggest you to read these articles on Non-taxable supply and Reverse Charge Mechanism, so as to enable you to have a clear idea on these GST terms.

 

For your immediate reference, we give below web links on Non-taxable supply and Reverse Charge Mechanism separately below.  You may kindly read the below links to know more about Reverse Charge Mechanism and Non-taxable supply.  

 

Term non-taxable supply under GST

What is Reverse Charge under GST

 

 

 

The above information easily explains about Reverse Charge Mechanism and Non-taxable supply.

 

We  hope, you have satisfied with the difference between Non-taxable supply and Reverse Charge Mechanism explained above. Do you have different thought on difference between Reverse Charge Mechanism and Non-taxable supply?

 

Share below your thoughts about Non-taxable supply and Reverse Charge Mechanism

 

 

 

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