Where do I report reverse charge (RCM) in GSTR-3B?

You have paid a lawyer, a goods transport agency or a foreign software vendor. The invoice shows no GST. Your accountant says "this is reverse charge". Now you are on the GSTR-3B screen and need to know which box takes it.

This article is about that one question: where reverse charge liability and its credit go in your monthly GSTR-3B, and what to check around it. It is for a company that is already registered and files GSTR-3B. It does not decide whether a particular purchase is covered by reverse charge. That depends on the notified lists, which you should confirm for each vendor.

The short answer

• Liability: declare the reverse charge tax in Table 3.1(d) of GSTR-3B. The GSTR-2B statement calls this section "Inward Supplies liable for reverse charge".
• Payment: pay it from your electronic cash ledger. The credit ledger cannot pay it.
• Credit: claim input tax credit (ITC), where it is allowed, in Table 4(A)(3) for domestic reverse charge supplies, or Table 4(A)(2) for import of services.
• Credit not allowed: show it as ineligible ITC in Table 4(D)(2).

The table numbers come from the explanation of FORM GSTR-2B, as substituted by Notification No. 12/2024-Central Tax, and from ICSI newsletters on the portal. The text of FORM GSTR-3B itself was not available to us, so confirm the labels on your own return screen. The rest comes from the CGST Act and Rules.

What reverse charge means in the Act

Normally the supplier collects GST and pays it to the government. Reverse charge flips this. Section 2(98) of the CGST Act, 2017 defines it as "the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier". It arises in two ways.

Notified categories (section 9(3), CGST Act, 2017). The Government may notify categories of supply on which tax "shall be paid on reverse charge basis by the recipient". Once notified, "all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax".

Notified class of registered persons buying from unregistered suppliers (section 9(4), CGST Act, 2017). The Government may notify a class of registered persons who, for specified goods or services received from an unregistered supplier, pay tax on reverse charge basis. The sub-section as it stands today was substituted with effect from 1 February 2019. The older wording, which made every registered buyer pay on every purchase from an unregistered supplier, no longer applies. Do not treat all purchases from small unregistered vendors as reverse charge.

Two more points matter for reporting:

• A person who must pay tax under reverse charge has to be registered. Section 24(iii) of the CGST Act, 2017 lists "persons who are required to pay tax under reverse charge" among those who must register, notwithstanding the usual threshold.
• Import of services has its own credit row in GSTR-3B (Table 4(A)(2), explained below). We do not go into the import rules here.

When the liability arises, and so which month

You report reverse charge in the return for the month in which the liability arose. The Act fixes that date separately for goods and services.

Goods (section 12(3), CGST Act, 2017). The time of supply is the earliest of: the date of receipt of the goods; the date of payment as entered in your books or debited in your bank account, whichever is earlier; or the date immediately following thirty days from the date of issue of the supplier's invoice or equivalent document.

Services (section 13(3), CGST Act, 2017). The time of supply is the earlier of: the date of payment as entered in your books or debited in your bank account, whichever is earlier; or the date immediately following sixty days from the date of issue of the supplier's invoice, where the supplier must issue one. Where the recipient must issue the invoice, it is the date of issue of that invoice by the recipient. If none of these can be determined, it is the date of entry in your books.

So an unpaid vendor invoice does not keep the liability out of the return forever. The clock runs from the invoice date or, for goods, from receipt.

Where it goes in GSTR-3B

Liability: Table 3.1(d)

The explanation of FORM GSTR-2B in Notification No. 12/2024-Central Tax, dated 10 July 2024 (which substituted that form), is clear. Note that it speaks of GSTR-3B tables only by cross-reference; it is not the GSTR-3B form text. For "Inward Supplies liable for reverse charge" it says "These supplies shall be declared in Table 3.1(d) of FORM GSTR-3B for payment of tax." So Table 3.1(d) is the home for the tax you owe as recipient. Put the taxable value and the integrated, central, State/UT tax and cess amounts there for the month.

Credit: Table 4(A)(3) and 4(A)(2)

The same explanation says the credit "may be availed under Table 4(A)(3) of FORM GSTR-3B on payment of tax". Note the last four words. Credit follows payment. You pay first, then you claim.

For import of services, the explanation says that "reverse charge credit on import of services is not part of this statement and will be continued to be entered by taxpayers in Table 4(A)(2) of FORM GSTR-3B". So:

For the last row, the explanation of the ITC Not Available section says such supplies "shall be declared in Table 3.1(d) of FORM GSTR-3B for payment of tax. However, credit will not be available on such supplies" and the credit "shall be reported as ineligible ITC in Table 4D(2)". You still pay the tax. You just do not get it back.

Credit notes

Where the supplier later issues a credit note on a reverse charge supply, the explanation says the liability against the credit note "shall be net-off in Table 3.1(d)". Any negative credit that arises from amendments to reverse charge invoices or debit notes is to be netted in Table 4(A)(3).

Why GSTR-2B will not fill Table 3.1(d) for you

GSTR-2B is built from what your suppliers file. The explanation says the reverse charge section covers supplies "which have been declared and filed by your suppliers in their FORM GSTR-1/IFF and GSTR-1A" and shows only the supplies on which ITC is available.

If the supplier is unregistered, no one files a GSTR-1 for the supply, so nothing appears. Import of services is also outside it, as quoted above. In practice, the cases you most need to report are the ones the portal will not show. Your purchase ledger, not GSTR-2B, is your starting point.

Paying it: cash only

Reverse charge tax cannot be paid out of ITC. Two provisions say so:

• Section 2(82), CGST Act, 2017 defines "output tax" as the tax chargeable on a taxable supply made by the person, but "excludes tax payable by him on reverse charge basis". Section 49(4) lets the credit ledger be used for "any payment towards output tax". Reverse charge tax is not output tax.
• Rule 85(4), CGST Rules, 2017 says "the amount payable on reverse charge basis" shall be paid "by debiting the electronic cash ledger".

Rule 61(2) of the CGST Rules, 2017 then requires you to discharge liability by debiting the cash or credit ledger "and include the details in the return in FORM GSTR-3B". For reverse charge, the debit is from the cash ledger. Make sure the cash is in the ledger before you offset on filing day.

The paper trail behind the return

A correct Table 3.1(d) figure needs documents.

• Self-invoice. Section 31(3)(f), CGST Act, 2017 says a person liable to pay tax under section 9(3) or 9(4) shall issue an invoice for goods or services received from an unregistered supplier "within the period as may be prescribed". Rule 47A of the CGST Rules, 2017 sets that period at "thirty days from the date of receipt of the said supply".
• Payment voucher. Section 31(3)(g), CGST Act, 2017 requires the same person to "issue a payment voucher at the time of making payment to the supplier".

Keep these in a separate numbered series. They are the evidence for each Table 3.1(d) line.

The RCM ledger check on the portal

According to the ICSI GST newsletter, the portal introduced from August 2024 a statement called the "RCM Liability/ITC Statement". The newsletter (September 2024 edition) describes it as capturing "the RCM liability shown in Table 3.1(d) of GSTR-3B and its corresponding ITC claimed in Table 4A(2) and 4A(3)". It applies from the August 2024 tax period for monthly filers and from the July-September 2024 quarter for quarterly filers. You find it under Services, Ledger, RCM Liability/ITC Statement.

A later ICSI newsletter (January 2026) reports that a warning message appears "in case the ITC claimed in Table 4(A)2 and 4(A)3 exceed the closing balance of RCM ledger plus the liabilities being reported in Table 3.1(d)". In plain words: the portal will warn you if you claim more reverse charge credit than you have declared and paid. Claim only what you have paid through Table 3.1(d).

For excess liability paid or credit claimed before the statement began, the September 2024 newsletter describes an opening balance facility; the January 2026 newsletter says multiple opportunities to report it have already been given, so do not assume it is still open.

Step by step each month

• List the month's reverse charge purchases from your ledger: each vendor, invoice date, taxable value. Do not rely on GSTR-2B.
• Fix the month using section 12(3) for goods and section 13(3) for services.
• Issue self-invoices (within thirty days of receipt, rule 47A) and payment vouchers.
• Fund the cash ledger for the total reverse charge tax.
• Fill Table 3.1(d) with the value and tax.
• Fill the credit table: 4(A)(3) for domestic supplies, 4(A)(2) for import of services. Use 4(D)(2) for ineligible credit.
• Pay from the cash ledger and file by the due date. Rule 61(1)(i), CGST Rules, 2017 sets the twentieth day of the next month for monthly filers. Quarterly filers have the dates in the rule's table; check which applies to your state.
• Look at the RCM ledger on the portal and see that the credit you claimed does not exceed the closing balance plus this month's liability.

What not to do

• Do not leave a reverse charge purchase out because "the vendor did not charge GST".
• Do not try to pay Table 3.1(d) tax with credit.
• Do not claim Table 4(A)(3) credit in a month before you have paid the tax.
• Do not report import of services credit in Table 4(A)(3). The GSTR-2B explanation puts it in 4(A)(2).
• Do not forget the credit deadline. Section 16(4), CGST Act, 2017 says no ITC can be taken on an invoice "after the thirtieth day of November following the end of financial year to which such invoice … pertains or furnishing of the relevant annual return, whichever is earlier". For an invoice of FY 2025-26, that is 30 November 2026, or the date you file the annual return if earlier. If you find a missed reverse charge purchase after that, you still owe the tax, and the credit may be lost.

What to do now

• Next step: list this month's reverse charge purchases and match them to Table 3.1(d) and the RCM Liability/ITC Statement (Table 3.1(d), FORM GSTR-3B; Services, Ledger on the portal).
• Deadline: the GSTR-3B for the month, on the twentieth of the next month for monthly filers (rule 61(1)(i), CGST Rules, 2017); and for any FY 2025-26 invoice, the credit window closes on 30 November 2026 or the annual return, whichever is earlier (section 16(4), CGST Act, 2017).
• Consequence: the tax is payable in cash whatever happens to the credit; missing the section 16(4) window leaves you with the cost and no offset.

Have a CA review your facts before you act or file.

FAQ

Which table do I use for reverse charge in GSTR-3B?
Table 3.1(d) for the liability. For credit, Table 4(A)(3) for domestic reverse charge supplies and Table 4(A)(2) for import of services, per the CBIC explanation of FORM GSTR-2B.

Can I pay reverse charge from my credit ledger?
No. Rule 85(4), CGST Rules, 2017 requires payment by debiting the electronic cash ledger, and reverse charge tax is excluded from "output tax" in section 2(82) of the Act.

Will the reverse charge amount appear in GSTR-2B?
Only where a registered supplier has reported it in GSTR-1, IFF or GSTR-1A. Supplies from unregistered suppliers and imports of services are not covered.

What if the credit is blocked?
You still declare and pay in Table 3.1(d). Report the credit in Table 4(D)(2) as ineligible ITC.

I missed a reverse charge purchase from last year. What now?
Declare and pay the tax in a later return and check the section 16(4) window for the credit. Interest and other consequences depend on your facts, so ask your CA before you file.

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See Also

• What is the last date to claim ITC on my purchase invoices for the year?
• We forgot an invoice in GSTR-1 and our buyer cannot see it. What now?
• Is this sale of goods interstate or intrastate GST?