# Forward Charge (FCM) vs Reverse Charge (RCM)
## Default rule — Forward Charge Mechanism (FCM)
The supplier collects GST from the recipient along with the price of the supply, and deposits it with the Government. This is the normal, default mechanism.
## Exception — Reverse Charge Mechanism (RCM)
For certain notified categories of goods/services, the recipient pays GST directly to the Government instead of the supplier collecting it. RCM applies on:
- Supply of goods notified under RCM (not in CA Inter syllabus)
- Supply of services notified under RCM
The Government notifies these categories on the recommendation of the GST Council.
## Side-by-side comparison
| Aspect | FCM | RCM |
|---|---|---|
| Who collects GST from recipient | Supplier | (Not collected — recipient pays directly to Govt) |
| Who deposits GST with Govt | Supplier | Recipient |
| Default mechanism? | Yes | No — only when notified |
| Recipient pays supplier | Price + GST | Only the price |
## Illustration
FCM example. Ram buys a laptop priced at ₹1,00,000. Supplier raises an invoice for ₹1,18,000 (₹1,00,000 + ₹18,000 GST). Ram pays ₹1,18,000 to supplier; supplier deposits ₹18,000 to Government.
RCM example. Ram receives a notified service priced at ₹1,00,000. Ram pays only ₹1,00,000 to supplier and deposits ₹18,000 GST directly to the Government himself.
## Why RCM exists
RCM helps the Government collect tax from:
- Sectors with many small/unorganised suppliers (better compliance via larger recipients), and
- Specific high-value categories where the recipient is the better-equipped collector (e.g., legal services to companies, GTA services to corporates).