Reverse Charge and Reversal of input tax credit

Posted on 11 June 2022 Category : GST terms difference

How to differentiate Reversal of input tax credit with Reverse Charge?

Difference between Reverse Charge and Reversal of input tax credit under GST terms

What is Reversal of input tax credit? How does Reverse Charge work under GST regime? What are the difference between Reversal of input tax credit and Reverse Charge?

A registered person, who has availed of input tax credit on any inward supply of goods or services or both, but fails to pay to the supplier thereof, the value of such supply along with the tax payable thereon, within the time limit specified in the second proviso to sub-section (2) of section 16, shall furnish the details of such supply, the amount of value not paid and the amount of input tax credit availed of proportionate to such amount not paid to the supplier in FORM GSTR-2 for the month immediately following the period of one hundred and eighty days from the date of the issue of the invoice:

“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 Reversal of 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 Reversal of 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 Reversal of input tax credit and Reverse Charge separately below. You may kindly read the below links to know more about Reverse Charge and Reversal of input tax credit.

Term Reversal of input tax credit in the case of non-payment under GST

Meaning of Reverse Charge under GST

The above information easily explains about Reverse Charge and Reversal of input tax credit.

We hope, you have satisfied with the difference between Reversal of input tax credit and Reverse Charge explained above. Do you have different thought on difference between Reverse Charge and Reversal of input tax credit?

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