Video narration
Does no GST on your vendor's invoice mean no GST is payable? Normally, the seller adds GST to your invoice and pays it to the government. The seller carries responsibility. The flip is this: under the Reverse Charge Mechanism, or RCM, the seller does not charge you that GST. In a notified supply, you-the recipient-pay the GST to the government instead. That does not mean every purchase without GST triggers reverse charge. RCM applies only to supplies notified under GST law, and the result depends on the category and facts. After paying it, you may claim Input Tax Credit, or ITC, only if you meet the applicable conditions. Paying RCM and getting ITC are separate steps. So, no: an invoice without GST does not always mean no tax. In a notified case, you pay as the recipient, then claim ITC only if eligible.