S1: Under GST, the Reverse Charge Mechanism (RCM) is applicable on the supply of notified services by an unregistered person to a registered person. S2: Under RCM, the recipient of the service is liable to pay GST and can also claim ITC on the same, subject to normal ITC rules. Which statement(s) is/are correct?
Explanation:
Both statements are correct. RCM shifts the liability to pay GST to the recipient for notified services from unregistered suppliers, and the recipient can claim ITC if the service is used for business and not blocked under Section 17(5).
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