Transition credit and Reverse Charge

Posted on 11 June 2022 Category : GST terms difference

How to differentiate Reverse Charge with Transition credit?

Difference between Transition credit and Reverse Charge under GST terms

What is Reverse Charge? How does Transition credit work under GST regime? What are the difference between Reverse Charge and Transition credit?

Under GST system, the following information explains about Reverse Charge and Transition credit.

As per GST terms “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. Transition credit means balance of input tax credit under Pre-GST Regime to carry for the purpose of setoff against the GST Liability in GST Regime.

The details about Reverse Charge and Transition credit with simple language from GST terms have been mentioned in this web blog separately. I suggest you to read these articles on Reverse Charge and Transition credit, 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 and Transition credit separately below. You may kindly read the below links to know more about Transition credit and Reverse Charge.

Reverse Charge Mechanism under GST

Term Transition credit under GST

The above information easily explains about Transition credit and Reverse Charge.

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

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CGST Act section 12 Time of supply of goods

CGST Act section 13 Time of supply of services

CGST Act Section 14 Change in rate of tax in respect of supply of goods or services

CGST Act Section 15 value of taxable supply under GST

CGST Act section 16 eligibility and conditions for taking input tax credit

CGST Act Section 17 Apportionment of credit and blocked credits

CGST Act section 18 availability of credit in special circumstances

CGST Act Section 19 Taking input tax credit on capital goods sent for job work

CGST Act section 20 Manner of distribution of credit by Input Service Distributor