RCM calculator
Enter taxable value + GST rate to estimate liability. Use as an estimate and confirm applicability from invoice + notification.
In common practice, RCM is discharged via cash ledger. Use this as an estimate and confirm with your advisor.
Quick references for GSTR-3B tables are included below for reporting.
RCM depends on category/conditions. Always verify using invoice terms and latest notifications.
How RCM works (simple explanation)
Reverse Charge means the recipient pays GST directly for notified supplies/conditions. Practically: compute → pay in cash → report → claim eligible ITC after payment (if allowed).
- Check if the supply is covered under RCM and conditions apply.
- Compute GST on taxable value (rate depends on category).
- Pay RCM liability (commonly via cash ledger) while filing.
- Report the liability; claim eligible ITC after payment (if allowed).
If you’re unsure about IGST vs CGST/SGST, use Place of Supply Finder.
- RCM is not “every unregistered purchase”—it’s specific to notified categories/conditions.
- IGST vs CGST/SGST can change outcomes (place of supply matters).
- ITC eligibility depends on restrictions and usage. Verify before assuming “full credit”.
Quick filing pointers (GSTR-3B)
Use this as a filing reference while preparing GSTR-3B. Portal labels can change—verify inside the filing screen.
Common RCM categories (quick reference)
Practical reference list (not exhaustive). RCM depends on conditions and changes with notifications—verify using the latest rules and your invoice.
View common categories list8 itemsTip: “Tax payable on reverse charge” on invoice is a strong signal—then verify category + conditions.
| Category | Typically pays | Notes |
|---|---|---|
| GTA (Goods Transport Agency) – certain cases | Recipient (RCM) in common scenarios | Rate/option depends on conditions and whether supplier opts for forward charge; verify invoice and option used. |
| Legal services by advocate/firm | Recipient (RCM) (common case) | Applies for business recipients in many practical cases; confirm applicability for your situation. |
| Director’s remuneration (company pays) | Company (RCM) (commonly treated) | Classification depends on facts; consult your CA for edge cases and payroll structures. |
| Sponsorship services | Recipient (RCM) (commonly) | Often RCM for specified recipients; verify current notification. |
| Security services (manpower) – specified recipients | Recipient (RCM) in specified cases | Has exemptions/conditions; verify supplier registration and recipient category. |
| Renting of motor vehicle (specified cases) | Recipient (RCM) in specified cases | Conditions vary; check invoice and option selected. |
| Import of services | Recipient (RCM) | Often reported separately; confirm valuation, place of supply and eligibility. |
| Any other notified category | As per notification | RCM list changes over time—always verify latest notification and invoice wording. |
RCM checklist (quick self-check)
Use this checklist before paying RCM and before claiming ITC.
- Confirm the supply is covered under RCM and your case meets conditions.
- Check invoice terms (forward charge option vs RCM) and supplier status.
- Decide whether IGST or CGST+SGST applies (place of supply).
- Pay RCM liability (commonly via cash ledger) within your return workflow.
- Claim ITC only if eligible and after payment (as per your filing method/advisor).
- Maintain supporting documents and internal notes for audit readiness.
Frequently asked questions
Quick answers to common RCM confusion points.
Is GST under RCM payable in cash, or can I use ITC?
When can I claim ITC on RCM?
Where do I report RCM in GSTR-3B?
Does RCM apply to every unregistered supplier purchase?
RCM on GTA: 5% vs 12% — which one should I use?
Do I need a self-invoice / payment voucher for RCM?
How do I decide IGST vs CGST/SGST for RCM?
What happens if I miss paying RCM on time?
Accuracy & sources
This page provides estimates + practical guidance. Always verify latest rules and invoice conditions.
This page provides an estimate-oriented calculator and practical guidance based on common GST filing flows. RCM applicability and reporting can change with notifications, clarifications, and portal label updates. Always verify the latest rules and your invoice terms.