RCM makes the buyer liable to pay GST
Common RCM triggers include legal services from advocates, goods transport agency services, import of services, sponsorship, security services, renting of motor vehicles and notified unregistered-supplier cases.
Situations this page is built for
- Business receiving legal advice from a law firm.
- Company using a goods transport agency for freight.
- Business importing software, SaaS or consulting from overseas.
- GST notice for undeclared RCM liability.
- Unregistered dealer purchases in specified categories.
- Confusion about RCM versus supplier registration.
Documents and details usually required
- List of vendor payments with RCM categories marked.
- GTA consignment notes.
- Import of services invoices with foreign currency amounts.
- Advocate/legal firm invoices.
- Previous GSTR-3B to check Table 3.1(d).
Practical process
Identify RCM transactions
Review payments and vendor categories period-wise.
Calculate liability
Apply correct GST rate and place-of-supply treatment.
Pay through challan
RCM usually requires cash payment before eligible ITC claim.
Claim eligible ITC
Report eligible RCM credit in GSTR-3B after payment.
Reconcile annually
Tie RCM to books and GSTR-9.
Common mistakes
- Not paying RCM on import of services.
- Claiming ITC before RCM payment.
- Not tracking GTA separately.
- Missing advocate invoices because no GST is shown on bill.
How to use this page safely
GST Reverse Charge Help can depend on financial year, entity type, turnover, location, portal status, notice dates, transaction volume, documentation quality and whether prior filings were done correctly.
Use this page as preparation guidance. Before filing, responding, registering or appealing, share exact forms, notices, portal screenshots, amounts, due dates and prior acknowledgements with a qualified professional.
A strong WorkIndex quote should clearly state scope, assumptions, documents required, expected timeline, exclusions, and whether follow-up, correction filing or notice-response support is included.
How to compare WorkIndex responses
- Ask whether the expert has handled this exact service type, industry and portal workflow before.
- Confirm whether the quote includes filing only, advisory only, or also reconciliation, correction, response drafting and follow-up.
- Prefer experts who ask for records before final pricing instead of quoting blindly.
- For urgent matters, include statutory deadline, notice/order date, current portal status and financial exposure.
- Keep acknowledgement, computation, challan, report, working papers and communication trail after completion.
Keep these ready before requesting quotes
- PAN, Aadhaar, GSTIN, TAN, DIN, CIN, LLPIN, UAN or registration number as applicable.
- Portal login access or screenshots from Income Tax, GST, MCA, EPFO, ESIC, Startup India or other relevant portals.
- Previous filings, acknowledgements, challans, certificates, orders, notices, audit reports and working papers.
- Bank statements, invoices, contracts, payroll records, books export, rent agreements, transaction reports or board/investor documents relevant to the case.
- A short written summary of what happened, what deadline exists, what help you need and whether support can be remote or must be local.
How to get better quotes faster
- Mention whether you need a one-time filing, urgent correction, registration, audit, monthly retainer, appeal, or advisory review.
- Add approximate transaction count, employee count, turnover range, number of filings/years pending, and any notice deadline so experts can size the work properly.
- For accounting and bookkeeping pages, share the software used, number of bank accounts, monthly invoice count, GST status, payroll size and whether old cleanup is needed.
- For audit and diligence pages, share the review period, location count, materiality level, report format expected and who will consume the report: founder, investor, bank, board or tax department.
- For tax and GST disputes, upload or summarise the section/form/order number, demand amount, date of service, due date and current portal status before asking for a fee quote.
FAQs
Who pays RCM, buyer or seller?
The recipient/buyer pays GST under RCM for notified transactions.
Can I claim ITC on RCM?
Eligible registered recipients can generally claim ITC after paying RCM, subject to normal restrictions.
Does RCM apply if supplier is registered?
Some RCM categories apply regardless of supplier registration; others depend on notification and facts.
Can WorkIndex help reconcile past RCM underpayments?
Yes. Share vendor ledger, GSTR-3B data and period to review.