The liability to pay GST would depend on the mechanism the transaction aligns to the supplier who is not registered under GST, neither issues a tax invoice nor collects the GST. Tax to the Government on such supply is pa

CS Executive · Tax Laws · PYQS · December 2020
The liability to pay GST would depend on the mechanism the transaction aligns to the supplier who is not registered under GST, neither issues a tax invoice nor collects the GST. Tax to the Government on such supply is paid by the recipient. This mechanism under GST is known as __________.
(A) Forward charge mechanism
(B) Reverse charge mechanism
(C) Composition levy mechanism
(D) Taxable supply mechanism

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: GST

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