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Reverse charge mechanism is governed by which section of the CGST Act?
ASection 7
BSection 9(3) and 9(4)
CSection 10
DSection 12
Answer & Solution
Correct answer: B. Section 9(3) and 9(4)
1. Sec 9(3) empowers the Government to notify supplies on which RCM applies (e.g. GTA, advocates, sponsorship).
2. Sec 9(4) covers RCM on supplies received from unregistered persons by notified registered persons.
3. Under both, the recipient (not the supplier) is liable to pay tax.
_Source: ICAI BoS CA Final Paper 8, Ch 3 "Levy and Collection of Tax", §Sec 9(3)/(4)_
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