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GST has simplified India’s indirect tax system, but at the same time it has introduced certain special provisions to ensure proper tax collection. One such important provision is the Reverse Charge Mechanism (RCM) . In many cases under GST, the supplier collects GST from the customer and deposits it to the Government. However, in some specified transactions, GST liability shifts from the supplier to the recipient. This is called the Reverse Charge Mechanism (RCM) . This blog explains the meaning, applicability, provisions, compliance requirements, and practical impact of RCM under GST in a clear and updated manner. What is Reverse Charge Mechanism (RCM) Under GST? The Reverse Charge Mechanism (RCM) means a system where the recipient of goods or services is liable to pay GST directly to the Government instead of the supplier. In simple words: ·        Under normal GST → Supplier pays GST ·        Under RCM → R...

In the GST system, every product and every service must be properly identified for taxation and reporting. To make this process easy and uniform, the Government uses special classification codes known as HSN and SAC . These codes are very important for businesses because they help in preparing correct invoices, filing GST returns, and avoiding tax mistakes. Let us understand the meaning, use, and importance of HSN and SAC under GST in simple English. What is HSN under GST? HSN stands for Harmonised System of Nomenclature . It is a globally accepted coding system used for classifying goods (products). This system was introduced to create a standard way of identifying goods across different countries. Under GST, every item such as food products, machinery, electronics, clothing, furniture, etc. is assigned a specific HSN code. Example Rice has a different HSN code Cement has a different HSN code Mobile phones have a different HSN code This he...

  GST registration is mandatory for many businesses in India depending on turnover, nature of business, and type of supply. For a proprietorship firm , GST registration is quite simple, but many applications get delayed or rejected due to incomplete or incorrect documentation. This article provides a complete and practical list of documents required for GST Registration for proprietorship in India. Documents Required for GST Registration for Proprietorship A proprietorship firm is not a separate legal entity. Therefore, GST registration is issued in the name of the proprietor , but the trade name can also be added. Below are the documents required: 1. PAN Card of Proprietor (Mandatory) PAN of the proprietor is compulsory because GST registration is linked with PAN. 2. Aadhaar Card of Proprietor GST portal may require Aadhaar authentication for quick approval. If Aadhaar authentication is not completed, GST officer verification may take longer. 3. Photograph ...