GST & Tax
RCM GST Calculator
Reverse charge tax you pay on rent, GTA freight, legal fees, security and imported services, and the ITC you can claim.
RCM GST Calculator
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RCM at 5%: Goods transport agency (GTA) — freight by road
Intra-state, CGST + SGST · www.indianbusinesstools.com
Who pays under this entry: A registered person, factory, society, co-operative society, body corporate, partnership firm or AOP (registered or not), or casual taxable person.
Who supplies: Goods transport agency
No RCM if the GTA has opted to charge GST itself (forward charge) and says so on the invoice. A GTA's rate is 5% (no ITC for the GTA) or 18% (with ITC); either way, you can claim the RCM tax you pay as ITC if you are otherwise eligible.
Report the tax in GSTR-3B Table 3.1(d). Pay it from your cash ledger; ITC can't be used to pay RCM.
How reverse charge works
Normally the seller collects GST and pays it to the government. Under reverse charge (RCM), the buyer pays it. The supplier sends an invoice with no GST on it, you pay the supplier the agreed amount, and you pay the GST to the government yourself. Then, if you can claim input tax credit (ITC), you take that tax back.
RCM applies only to supplies the government has notified. The services are listed in Notification 13/2017-Central Tax (Rate), and the calculator above covers all of them, plus import of services. For goods under Notification 4/2017, or for purchases from unregistered suppliers that are notified under section 9(4), choose "Other notified supply" and enter the rate.
Not to be confused with the Reverse GST Calculator, which works out the GST inside a price that already includes it. For ordinary GST on a sale, use the GST Calculator.
Services under reverse charge
The list below follows Notification 13/2017-CT (Rate) as amended up to 7/2025 (16 Jan 2025). The government can add or remove entries, so check the current notification before you rely on it for a filing.
| Sl. | Supply | Supplier | You pay RCM if you are |
|---|---|---|---|
| 1 | Goods transport agency (GTA) — freight by road | Goods transport agency | A registered person, factory, society, co-operative society, body corporate, partnership firm or AOP (registered or not), or casual taxable person. |
| 2 | Legal services from an advocate or law firm | Individual advocate (including a senior advocate) or a firm of advocates. | Any business entity in the taxable territory. |
| 3 | Services of an arbitral tribunal | Arbitral tribunal. | Any business entity in the taxable territory. |
| 4 | Sponsorship services | Any person other than a body corporate (since 16 Jan 2025). | A body corporate or partnership firm in the taxable territory. |
| 5 | Services from the Government or a local authority | Central Government, State Government, Union territory or local authority. | Any business entity in the taxable territory. |
| 5A | Renting of immovable property by the Government | Central Government (not Indian Railways), State Government, Union territory or local authority. | A person registered under GST. |
| 5AA | Renting of a residential dwelling to a registered person | Any person. | Any registered person. |
| 5AB | Renting of commercial property by an unregistered landlord | An unregistered person. | A registered person who has not opted for the composition scheme. |
| 5B / 5C | Development rights, FSI or a 30-year land lease for a project | Any person. | A promoter of a real estate project. |
| 6 | Services of a director (sitting fees, commission) | A director of a company or body corporate. | The company or body corporate. |
| 7 | Insurance agent's commission | An insurance agent. | Any person carrying on insurance business. |
| 8 | Recovery agent services to a bank, FI or NBFC | A recovery agent. | A banking company, financial institution or NBFC. |
| 9 | Copyright licence by a music composer, photographer or artist | Music composer, photographer, artist or the like. | A music company, producer or the like. |
| 9A | Copyright licence by an author to a publisher | An author. | A publisher in the taxable territory. |
| 10 | Members of the RBI Overseeing Committee | Members of the Overseeing Committee constituted by the Reserve Bank of India. | Reserve Bank of India. |
| 11 | Individual direct selling agents (DSA) of a bank or NBFC | Individual DSAs, other than a body corporate, partnership or LLP. | A banking company or NBFC. |
| 12 | Business facilitator services to a bank | Business facilitator (BF). | A banking company. |
| 13 | Agent of a business correspondent | An agent of a business correspondent (BC). | The business correspondent. |
| 14 | Security services (supply of security personnel) | Any person other than a body corporate. | A registered person. |
| 15 | Renting of a passenger vehicle with fuel, to a body corporate | A person other than a body corporate who has not charged GST at the full rate on the invoice. | A body corporate in the taxable territory. |
| 16 | Securities lending under SEBI's scheme | The lender of the securities. | The borrower of the securities. |
| IGST 1 | Import of services from outside India | A person located outside India. | A person in India, other than a non-taxable online recipient. |
Worked examples
Office rent of ₹50,000 a month from an unregistered landlord. You are a registered business and the landlord is not, so RCM applies. At 18%, the tax is ₹9,000: ₹4,500 CGST and ₹4,500 SGST. You pay the landlord ₹50,000, pay ₹9,000 to the government in cash, and claim ₹9,000 as ITC, so the net cost is ₹50,000.
₹20,000 freight paid to a goods transport agency at 5%. You are a registered person and the GTA has not opted to charge GST itself. The RCM tax is ₹1,000 (₹500 CGST and ₹500 SGST).
A ₹1,00,000 fee to an advocate in another state. Legal services are under RCM when a business receives them. The tax is 18% = ₹18,000, all IGST because the supplier is in another state.
₹2,00,000 for software consulting from a US company. This is an import of services, so the whole 18% is IGST: ₹36,000. Report it in GSTR-3B Table 3.1(d) and claim the ITC in Table 4(A)(2).
Frequently asked questions
What is the reverse charge mechanism (RCM) in GST?
RCM moves the duty to pay GST from the supplier to the buyer. The supplier invoices without GST, and the buyer pays the tax to the government. It applies only to supplies the government has notified, such as GTA freight, legal services, security services, sponsorship and imports of services. Example: you pay an advocate ₹1,00,000. You also pay ₹18,000 GST to the government yourself.
Can I pay RCM using my input tax credit?
No. RCM must be paid from the electronic cash ledger, the account you top up with a bank payment. After you pay, you can claim the same tax as ITC if you are otherwise eligible. Example: you owe ₹9,000 RCM and have ₹50,000 of ITC. You still pay ₹9,000 in cash first, then claim ₹9,000 back in the same return.
Where do I show RCM in GSTR-3B?
Show the value and tax in Table 3.1(d), inward supplies liable to reverse charge. Show the ITC in Table 4(A)(3), or in Table 4(A)(2) for an import of services. Example: ₹9,000 RCM tax on rent goes in 3.1(d), and the ITC of ₹9,000 goes in 4(A)(3).
Is rent subject to RCM?
Only in some cases. Commercial property rented from an unregistered landlord by a registered tenant (not under composition) is under RCM from 10 October 2024. A residential dwelling rented to a registered person is also under RCM. If the landlord is registered, they charge GST on the invoice and there is no RCM. Example: office rent of ₹50,000 from an unregistered landlord means you pay ₹9,000 at 18%.
When do I owe RCM on GTA freight?
When the GTA's invoice has no GST on it and you are a registered person, factory, society, co-operative society, body corporate, partnership firm or casual taxable person. If the GTA has opted to charge GST itself and says so on the invoice, there is no RCM. Example: a ₹20,000 freight bill with no GST means you pay 5% = ₹1,000 yourself.
By when must I pay RCM, and what happens if I am late?
For services, the tax point is the earlier of the day you pay the supplier and the day after 60 days from the supplier's invoice (for goods, 30 days). You report and pay it in the GSTR-3B for that month. Late payment attracts interest at 18% a year, which you can work out in the GST Late Fee & Interest Calculator. Example: invoice dated 1 September, unpaid — the tax point is 1 November.
Do I have to issue an invoice for RCM purchases?
If your supplier is registered, they issue the invoice, without GST on it. If your supplier is unregistered, you issue a self-invoice, and a payment voucher when you pay. Example: an unregistered landlord does not send a tax invoice, so you raise a self-invoice for the rent each month.
I am under the composition scheme. Do I pay RCM?
Yes, on most entries, and you pay at the full rate. But you cannot claim ITC on it, so choose "No" for the ITC question. The exceptions are entries that say otherwise, such as security services, which a composition taxpayer does not pay RCM on.