Meaning of reverse charge :
Taxable person means a person who is registered or liable to be registered under section 22 or 24 of CGST Act – section 2(107) of CGST Act.
Sections 22 and 24 of CGST Act requires every supplier of goods or services or both to register.
Section 9(1) of CGST Act and section 5(1) of IGST Act provides that GST is payable by ‘taxable person’.
Thus, normally, GST is payable by ‘taxable person’ who is supplying goods and service.
However, in some cases, GST is payable by person recipient of the goods or services or both. This is termed as ‘reverse charge’.
“Reverse charge” means the liability to pay tax by the person receiving goods and/or services instead of the supplier of such goods and/or services under section 9(3) or 9(4) of CGST Act or section 5(3) or 5(4) of IGST Act – section 2(98) of CGST Act.