What we have studied till now is that
In Normal Charge, Seller deposits GST to
government
and in Reverse Charge, Buyer deposits GST to
government
Sometimes, in Reverse Charge, third Person also deposits GST to
government
Example
Service Provided by OLA/Uber
Suppose a customer books a cab of Ajay Taxi Service through OLA app
In this case,
Service Provider is Ajay Taxi Service
Service Receiver is Customer
GST is deposited in this case by neither Ajay Taxi Service or Customer
It is deposited by OLA in this case under Reverse Charge
Note
Suppose customer pays OLA 100 ,OLA Deducts 20 commission and pays balance 80
In this case, Reverse charge is applicable on whole 100 Collected from customer @ 5%
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