GST & Indirect Tax

GST Reverse Charge Mechanism (RCM) Compliance

GST reverse charge compliance — identification of RCM transactions (legal services, GTA, security, director remuneration), Section 9(3)/(4) liability, RCM payment, and ITC claim in the same month. Section 9(3) CGST Act, Notification 13/2017-CT(R), GTA, legal services, director remuneration, RCM payment, ITC eligibility in same month.

Reviewed by CA Harun Raaj, ICAI Reg. No. 238303·Last reviewed: 6 July 2026

Starting from Discuss with usTypical timelineGST RCM

What is included

• GST RCM scope review and action plan
• Document checklist and evidence review
• Drafting, computation, or filing support
• Submission support and acknowledgement tracking
• Follow-up on queries, corrections, or notices
• Closure notes and next-step reminders

Documents required

• Sales invoices and purchase records
• GSTIN, PAN, and entity constitution details
• 2B reconciliation and tax payment challans
• Notices, if any, and prior filing acknowledgements

Government fees

See the fee table below for the statutory filing charge and common delay logic.

Legal basis

• Section 22 of the CGST Act 2017
• Section 24 of the CGST Act 2017
• Rule 8 of the CGST Rules 2017

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Process

How the service works

The workflow is built to be predictable: document collection, legal review, filing, and post-filing follow-through.

Step 1Scope

Confirm the scope

We map the exact service route to the trigger, form set, and documentary evidence so the work starts on the right footing.

Step 2Docs

Collect the records

We gather the company records, notices, or transaction documents needed for gst rcm and check them for gaps.

Step 3Draft

Prepare the filing or memo

We draft the computations, filings, or advisory memo so the next person in the chain can review it quickly and confidently.

Step 4Close

Submit and track follow-up

We move the file through submission, keep the acknowledgement trail tidy, and handle any follow-up questions that come back.

AEO summary

GST RCM is the CA-led workflow that helps a Private Limited company stay compliant, file the right forms, and keep the record trail clean.

GST Reverse Charge Mechanism (RCM) Compliance workflow

We start by checking the exact trigger, the legal route, and the documents that make gst rcm executable for a Private Limited company. That keeps the filing or advisory work tied to the actual statutory path instead of a generic checklist.

Once the scope is locked, we prepare the working papers, filings, and follow-up notes so the matter can move without unnecessary back-and-forth. The goal is to make the process understandable for the founder, the finance team, and the reviewer.

• Scope mapping for gst rcm
• CA-led document review and drafting
• Submission support and acknowledgement tracking

What this protects for the company

For a Private Limited company, the value is not just speed. It is also about keeping the record trail clean enough for banks, investors, regulators, and future diligence work.

A founder-friendly process lowers the chance of avoidable notices, rework, or missed deadlines while keeping the company aligned with the right section, rule, or circular in GST & Indirect Tax.

• Cleaner compliance evidence for GST & Indirect Tax
• Better preparation for diligence or audit
• Less last-minute chasing inside the finance team

Government fees

Fee breakdown

Item	Fee	Notes
Portal filing or application	Nil	GST portal steps usually do not carry a separate filing fee.
Late fee or interest	As applicable	Late fee and interest depend on the return type and the delay period.

Timeline

Typical turnaround

Typical timeline usually means a 3–7 working days turnaround, assuming documents are complete and any board or shareholder approvals are already in place.

Pricing note

Government fees can vary by portal step, state rules, and whether the matter is a registration, return, refund, or notice response.

Related services

Keep the company moving

GST Returns

Support for GST Returns.

GST Compliance

Support for GST Compliance.

FAQ

Frequently asked questions

Which services attract reverse charge under Section 9(3)?

Only the goods and services specifically notified under Section 9(3) of the CGST Act 2017 attract reverse charge. Notification 13/2017-CT (Rate) is the main list, and it covers items such as GTA, advocate services, director services, sponsorship, and other notified entries.

Do we need GST registration just because we receive RCM supplies?

Yes, if the company is liable to pay tax under reverse charge, Section 24 of the CGST Act 2017 makes registration mandatory even if ordinary turnover is below the Section 22 threshold. RCM liability is therefore a separate registration trigger, not just a payment issue.

How is RCM reported in GSTR-3B and when can ITC be claimed?

RCM tax is reported in Table 3.1(d) of GSTR-3B and paid in cash through the electronic cash ledger under Section 49(4). Eligible input tax credit can be claimed only after the tax is paid and the Section 16 conditions are satisfied.

What is the due date for paying RCM tax, and can it be offset against ITC?

RCM liability is paid by the return due date for that tax period, usually with the GSTR-3B cycle. The tax itself is discharged in cash first, and only then can eligible ITC be taken and used under Sections 16 and 49.

What happens if a company misses RCM liability for the year?

Unpaid RCM can attract interest under Section 50 and demand proceedings under Sections 73 or 74 depending on whether the default looks bona fide or fraudulent. The delayed payment also disturbs the timing of ITC claims because Section 16 ties credit to tax payment.

Canonical reference: https://www.pvtltd.co/services/gst-rcm-compliance

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We can help with the filing, the legal mapping, and the follow-up work that keeps the company compliant after submission.

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