S1: Under GST, the 'Reverse Charge Mechanism' (RCM) is applicable on the supply of notified goods by an unregistered person to a registered person. S2: Under RCM, the recipient must pay GST using his electronic cash ledger, not the electronic credit ledger. Which statement(s) is/are correct?
Explanation:
Both statements are correct. RCM applies to notified goods from unregistered suppliers, and the recipient must pay the tax in cash (via the electronic cash ledger) before claiming ITC in the electronic credit ledger.
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