Returns mechanism and Reverse Charge Mechanism

Difference between Reverse Charge Mechanism and Returns mechanism under GST terms

 

What is Returns mechanism? How does Reverse Charge Mechanism work under GST regime? What are the difference between Returns mechanism and Reverse Charge Mechanism?

 

The basic features of the returns mechanism in GST include electronic filing of returns, uploading of invoice level information and auto-population of information relating to Input Tax Credit (ITC) from returns of supplier to that of recipient, invoice-level information matching and auto reversal of Input Tax Credit in case of mismatch.

 

Unregistered recipients mean the person who receives taxable supplies without having valid registration under GST Laws. Section 9(4) of the CGST Act, 2017 mandates that tax on supply of taxable goods by an unregistered supplier to a registered person will be paid by the registered person under reverse charge mechanism. This provision, however, must be read in conjunction with section 2(105) read with section 7 of the CGST Act, 2017. Section 2 (105) defines supplier as a person supplying the goods or services.

 

The details about Returns mechanism 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 Returns mechanism 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 Returns mechanism and Reverse Charge Mechanism separately below.  You may kindly read the below links to know more about Reverse Charge Mechanism and Returns mechanism.  

 

What is returns mechanism under GST

Reverse Charge Mechanism Unregistered recipients under GST

 

The above information easily explains about Reverse Charge Mechanism and Returns mechanism.

 

We hope, you have satisfied with the difference between Returns mechanism and Reverse Charge Mechanism explained above. Do you have different thought on difference between Reverse Charge Mechanism and Returns mechanism?

 

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Section 74 Determination of tax not paid, CGST Act, 2017             

Officers to assist proper officers, Sec 72 of CGST Act, 2017           

Inspection of goods in movement, Sec 68 of CGST Act, 2017

Section 67 of CGST Act, 2017 Power of inspection, search and seizure    

Section 20 of IGST Act,2017 Application of provisions      

Tax wrongfully collected and paid to Central Government or State Government, IGST Act,2017 

Zero rated supply, section 16 of IGST Act,2017   

section 14 of IGST Act,2017, Special provision for payment of tax by a supplier                                            

Section 59 of CGST Act, 2017 Self-assessment    

Consumer Welfare Fund, Section 57 of CGST Act, 2017  

Refund of tax, Sec 54 of CGST Act, 2017

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Electronic acknowledgement under GST

Composition Scheme Rules under GST

Effect of GST on consumer farmers

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How to Import to Burundi?

How to import to India from Burundi?

 


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