What is Reverse Charge Mechanism (RCM) under GST for textile businesses?

Short answer

Under RCM, the recipient of goods or services pays GST directly to the government instead of the supplier (commonly applicable on specific legal, transport, or unregistered raw material purchases under tax laws).

Important tax compliance rule for traders in Surat and Ahmedabad.

Updated 6 November 2026 Share on WhatsApp

Related questions

What do "Dhara" and "Vatav" (CD) mean in Surat and Ahmedabad textile markets?Dhara is the customary interest-free credit period (grace days) allowed on a wholesale cloth bill, while Vatav (Cash Discount or …
How does the 45-day MSME payment rule (Section 43B(h)) affect textile buyers and traders?Under Section 43B(h) of the Income Tax Act, buyers must pay Udyam-registered Micro and Small Enterprise (MSE) textile manufacture…
How do I find verified textile transport companies and check parcel freight rates from Surat, Ahmedabad, or Mumbai?Use the BizTorq Textile Transporter Directory to find GST-verified road cargo operators along Ring Road (Surat), Sarangpur/Asarwa…
How much retail profit margin can I make on wholesale sarees and kurtis from Surat, Ahmedabad, and Jaipur?Boutiques and retail stores typically earn a 35% to 60% gross margin on daily-wear cotton kurtis and printed sarees, and a 70% to…
What are the most important HSN codes for sarees, fabrics, kurtis, and T-shirts in India?The four most used textile HSN codes are 5407 for synthetic filament woven fabrics and polyester sarees, 5208 for pure cotton wov…

See all textile market questions

Still have a question?

Tell us what you're looking for and we'll point you to the right market or supplier.

Ask on WhatsApp Browse Surat markets