Reverse Charge Mechanism (RCM) Under Gst and Its Impact on Bihar's Economy

Author(s)	SHASHWAT SHAILESH
Country	India
Abstract	The Reverse Charge Mechanism (RCM) under the Goods and Services Tax (GST) has transformed the tax structure in India by shifting the tax liability from suppliers to recipients in specified cases. This mechanism is particularly significant for Bihar, where the economy is driven by agriculture, small-scale industries, and inter-state trade. While RCM has enhanced tax compliance and broadened the tax base, it has also introduced challenges such as administrative burdens and liquidity constraints for small businesses. This article explores RCM’s legal framework, its economic impact on Bihar, challenges in implementation, government perspectives, rules and regulations, penalties, and viewpoints from taxpayers. Additionally, it discusses policy recommendations to improve RCM’s effectiveness and ease of compliance for businesses in Bihar.
Keywords	GST, Reverse Charge Mechanism, Bihar Economy, Tax Compliance, Small and Medium Enterprises, Agriculture, Taxpayer Burden, Formalization, Government Policy, Tax Penalties, Economic Impact
Field	Mathematics > Economy / Commerce
Published In	Volume 7, Issue 2, March-April 2025
Published On	2025-03-11

About IJFMR Fees & Payment Current Issue Publication Archive	Submit Research Paper Track Submission Status Publication Guidelines Publication Ethics Peer Review & Plagiarism	Join as a Reviewer Editors & Reviewers Reviewer Referral Program Get Reviewer Membership Certi.	Website/Journal Policies Usage Policy Content Policies Privacy Policy

Contact Us		+91-9687-828-838	editor@ijfmr.com

International Journal For Multidisciplinary Research