Reverse charging mechanism is a procedural way of discharging tax liabilities and formalities by buyer of services or goods or both instead of seller.The RCM adjustment entries are discussed below. For example, a transaction will be considered as reverse charge if tax is payable by buyer instead of seller. GST reverse charging provisions are covered under different sections and rules. Government has also released the list of services when received tax liability should be discharged by recipient instead of service provider. What are the provisions applicable to buyer or recipient in case of reverse charging? If you as a recipient of services or goods or both are liable to pay tax under reverse charge mechanism, you have to comply with all the provisions applicable under GST to a registered person. For example, following procedural as well as documentary functions are performed when a registered person makes a supply. a) Issue a tax invoice,b) Furnishing details in monthly returns,c) Calculating and remitting the tax liabilityd) Documenting the charging as well as payment cycles  Above are the general functions that a registered person has to perform to comply with law. When you pay under RCM, it becomes your obligations to comply with these rules.  For Accounting Purposes Different ledgers and Journal Entries are required for proper disclosure and recording of Reverse Charge amount in GST. 

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