How to differentiate Reverse Charge Mechanism with Revenue Neutral Rate?
What is Reverse Charge Mechanism? How does Revenue Neutral Rate work under GST regime? What are the difference between Reverse Charge Mechanism and Revenue Neutral Rate?
Under GST system, the following information explains about Reverse Charge Mechanism and Revenue Neutral Rate.
As per GST terms, Reverse Charge Mechanism 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. Revenue neutral rate (RNR) is a structure of different rates established in order to match the current revenue generation with revenue under GST.
The details about Reverse Charge Mechanism and Revenue Neutral Rate with simple language from GST terms have been mentioned in this web blog separately. I suggest you to read these articles on Reverse Charge Mechanism and Revenue Neutral Rate, so as to enable you to have a clear idea on these GST terms.
For your immediate reference, we give below web links on Reverse Charge Mechanism and Revenue Neutral Rate separately below. You may kindly read the below links to know more about Revenue Neutral Rate and Reverse Charge Mechanism.
What is Reverse Charge under GST
Term Revenue neutral rate (RNR) under GST
The above information easily explains about Revenue Neutral Rate and Reverse Charge Mechanism.
I hope, you have satisfied with the difference between Reverse Charge Mechanism and Revenue Neutral Rate explained above. Do you have different thought on difference between Revenue Neutral Rate and Reverse Charge Mechanism?
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