Where the recipient pays the tax instead of the supplier. Find out which services fall under RCM, how much to pay in cash, and how to claim ITC after payment - all in one place.
The entire logic of reverse charge can be understood from these three rules.
RCM tax must be paid only in cash through the Electronic Cash Ledger (GST PMT-06). You cannot use Input Tax Credit (ITC) to pay RCM tax.
You can claim ITC of RCM tax only after paying it in cash - subject to Sections 16 & 17 (business use, non-exempt, and not blocked).
When buying from an unregistered vendor, you must issue a Self-Invoice (Sec 31(3)(f)) and a Payment Voucher.
Pick a service, enter the amount, and instantly see the RCM tax to deposit in cash, the ITC you can claim, and its split into CGST / SGST / IGST.
Based on the values in the calculator above, ready-to-use journal entries are generated below - copy them straight into your books.
Search the notified list to see the service, supplier & recipient, statutory provision, and applicable GST rate.