Time of Supply 4.S. 12 (3) in case of RCM
Sir, on the video, you have explained about RCM 3 step criteria but not What is RCM why Receipient should pay GST and why not Supplier? Apart from GOVT Specified, what is the essence of this transaction what is the key reason Govt ascribed so? It would be great if you can share me that if this topic had been covered in the following modules anywhere?
Govt. wants to bring more people under the tax net. For e.g. Small service providers would not be liable for GST registration. If the Govt asks everyone to register, it becomes difficult for such small businesses. The govt does not want to lose out on revenue as well so they shift the burden of payment of GST to the receiver. For Govt also it becomes easier to administer. With this more and more people would come under the tax net.