GST Reverse Charge (RCM) Calculator
Guidance based on Notifications 13/2017-CT(R) and 10/2017-IT(R) as amended (metal scrap from unregistered suppliers and commercial rent from unregistered landlords added October 2024; GTA forward-charge option via Annexure V). Section 9(4) does NOT apply to ordinary purchases from unregistered vendors. RCM must be paid in cash, never from ITC. Last verified: 6 September 2026.
Frequently Asked Questions
Can I pay RCM using my ITC balance?
No. Reverse charge liability must be discharged through the electronic cash ledger (challan PMT-06). Once paid, the same amount becomes eligible ITC in the same tax period, subject to Section 16/17 conditions.
Where do I report RCM in GSTR-3B?
Declare the taxable value and tax in Table 3.1(d) — inward supplies liable to reverse charge — and, if eligible, claim the credit in Table 4(A)(3). Pay before filing the return.
When do I need a self-invoice?
When the supplier is unregistered or located outside India and cannot issue a GST invoice. Rule 47A requires the recipient to issue the self-invoice within 30 days of receiving the supply; a registered supplier under RCM (for example an advocate with a GSTIN) issues their own invoice and you pay only the taxable value to them.
My transporter has a GSTIN — is freight still under RCM?
Only if the GTA has not opted for forward charge by filing Annexure V before the start of the financial year. If it has, the GTA charges 5% (without ITC) or 12% (with ITC) on its invoice and no RCM arises for you. Keep the GTA’s declaration on file.
Does buying stationery from an unregistered shop attract RCM?
No. Section 9(4) reverse charge on unregistered purchases is limited to notified cases — real-estate promoters, metal scrap, commercial rent, and specified agricultural goods. Routine purchases are outside it.
Is a foreign SaaS subscription under RCM?
Yes. Any taxable service received from a supplier outside India is an import of service; the Indian recipient pays IGST under reverse charge on the rupee value (RBI reference rate on the invoice date) regardless of the foreign supplier’s status.