How to differentiate Input Tax Credit with Reverse Charge?
What is Input Tax Credit? How does Reverse Charge work under GST regime? What are the difference between Input Tax Credit and Reverse Charge?
Under GST system, the following information explains about Input Tax Credit and Reverse Charge.
As per GST terms, Input Tax Credit ITC is a mechanism to ensure that the supplier needs to pay GST in cash only on the value addition. ITC mechanism thereby avoids cascading of taxes that is ‘tax on tax’. Under the previous system of indirect taxation. “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 Input Tax Credit and Reverse Charge with simple language from GST terms have been mentioned in this web blog separately. We suggest you to read these articles on Input Tax Credit and Reverse Charge, so as to enable you to have a clear idea on these GST terms.
For your immediate reference, we give below web links on Input Tax Credit and Reverse Charge separately below. You may kindly read the below links to know more about Reverse Charge and Input Tax Credit.
Meaning of Input Tax Credit Mechanism in GST
Meaning of Reverse Charge under GST
The above information easily explains about Reverse Charge and Input Tax Credit.
We hope, you have satisfied with the difference between Input Tax Credit and Reverse Charge explained above. Do you have different thought on difference between Reverse Charge and Input Tax Credit?
Share below your thoughts about Input Tax Credit and Reverse Charge
Learn Exports Imports Free, Click here
Click here to know GST rate of your goods or service
Sec 168 of CGST Act, 2017 Power to issue instructions or directions
Section 163 of CGST Act, 2017 Levy of fee
Publication of information in respect of persons in certain cases, Section 159 of CGST Act, 2017
Section 156 Persons deemed to be public servants, CGST Act, 2017
Power to collect statistics, Section 151 of CGST Act, 2017
Goods and services tax compliance rating, Sec 149 of CGST Act, 2017
Section 146 of CGST Act, 2017 Common Portal
Section 145 of CGST Act, 2017 Admissibility of micro films, facsimile copies of documents
Job work procedure, Section 143 of CGST Act, 2017
Term Transition credit under GST
Transfer of credit on sale, merger, amalgamation, lease Means
Term transaction value under GST
Threshold Exemption under GST
Meaning of National Academy of Customs, Excise and Narcotics (NACEN)
Meaning of Indian Merchants Chamber Association (IMC)
Term TDS credit, TDS certificate under GST
Printing machine error with customs – Un able to hand over documents to carrier.
Procedure and Documentation for Filing Claim of Marine Insurance.
What is VACIS exam in US import customs clearance
When can an exporter release bill of lading from shipping company?
When does exporter get EP copy of shipping bill after customs clearance
Procedure for Central Excise Clearance Under Claim of Rebate
Procedure to claim Duty Drawback
Procedures and documentation on Triangular shipments
Procedures for Re-imports
Procedures to claim brand rate of draw back
Customs procedures for Paraguay Export
Registration required to export from Paraguay
Documents needed for Paraguay import
Import Customs processes in Paraguay
Import Registration and import Licence procedures in Paraguay
How to export from Papua New Guinea?