In the context of GST what do you understand by the term lsquo Reverse Charge rsquo ........

Economic Affairs Tax System

In the context of GST, what do you understand by the term ‘Reverse Charge’?

Reverse Charge refers to the increase in the tax burden on certain goods and services after the implementation of GST.

It is the penal charge levied by National Anti Profiteering Authority on firms not passing on the benefits of reduced prices to consumers.

Reverse Charge is the input tax credit one can claim for tax paid on previous stages of production.

Under the reverse charge mechanism, a person receiving goods or services collects the GST levied and deposits the tax with the government instead of the supplier.

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Explanation:

Fourth option is correct.
Reverse charge is a mechanism where the recipient of the goods and/or services is liable to pay GST instead of the supplier.

Normally, the supplier of goods or services pays the tax on supply. In the case of Reverse Charge, the receiver becomes liable to pay the tax, i.e., the chargeability gets reversed.