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ToolsGST SuiteRCM Applicability Checker (Section 9(3) & 9(4))
CGST Act Section 9(3) & 9(4) Reverse Charge Engine

RCM Applicability Checker (Section 9(3) & 9(4))

Interactive Q&A diagnostic and master statutory database for GST Reverse Charge Mechanism (RCM) on GTA freight, advocate fees, director remuneration, residential/commercial property renting, and security services under Notification No. 13/2017-Central Tax (Rate).

GST Section 9(3) & 9(4) Diagnostic

RCM Applicability Checker & Statutory Database

Instantly check whether Reverse Charge Mechanism (RCM) applies to your procurement, determine the exact statutory rate, and verify CBIC notification entries for FY 2026-27.

Active Master LawNotif 13/2017-CT(R) & AmendmentsUpdated for FY 2026-27
Selected Statutory Category

Goods Transport Agency (GTA) Services

Notif 13/2017-CT(R) Entry 1 & Notif 04/2022-CT(R)
Diagnostic Result
CONDITIONAL RCM
Statutory Verdict Summary: RCM applies @ 5% if GTA has NOT opted to pay under Forward Charge Mechanism (FCM) @ 5% or 12% in Annexure V.
Supplier Status

Goods Transport Agency (GTA)

Recipient Status

Factory, Society, Co-operative, Registered Person, Body Corporate, Partnership Firm

Applicable Tax Rate

5% (CGST 2.5% + SGST 2.5%) or 12% (if GTA did not exercise FCM option @ 12%)

Recipient ITC Status

Eligible for ITC under Sec 16

Mandatory Legal Conditions & Provisos

  • •If GTA issues invoice with FCM Declaration (Annexure V) paying 5% or 12%, RCM does NOT apply.
  • •If GTA does not opt for FCM, recipient specified under Entry 1 MUST pay 5% GST under RCM.
  • •Department / Govt Bodies registered only for TDS under Sec 51 are EXEMPT from RCM.
Mandatory Accounting SOP

1. Issue a Self-Invoice under Section 31(3)(f) if supplier is unregistered.
2. Deposit tax in cash via GSTR-3B Table 3.1(d) (Credit ledger cannot be used for RCM liability).
3. Claim ITC in GSTR-3B Table 4(A)(2) in the same tax period.

Consult a Tax Expert / CA

Need professional help with waivers, disputes, or filings? Connect with a local verified CA.

Consult a Tax Expert / CA

Need professional help with waivers, disputes, or filings? Connect with a local verified CA.

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Understanding GST Reverse Charge Mechanism (RCM)

Under the general rule of GST, the supplier of goods or services collects tax from the buyer and deposits it with the government. Reverse Charge Mechanism (RCM) flips this statutory responsibility: the recipient of the supply becomes directly liable to pay the GST in cash into the government treasury.

Section 9(3) of the CGST Act covers specified categories of goods and services notified by the government (such as Notification 13/2017-CT(R) for services and Notification 4/2017-CT(R) for goods), while Section 9(4) applies to procurements from unregistered suppliers by specified registered taxpayers.

Key compliance rules govern RCM payments: (1) Tax must be paid 100% in cash via Electronic Cash Ledger — Input Tax Credit (ITC) cannot be used to pay RCM liabilities. (2) Under Section 31(3)(f), the recipient MUST issue a Self-Invoice on the date of receipt of service from an unregistered supplier. (3) Under Section 31(3)(g), a Payment Voucher must be issued when making payment to the supplier. (4) Input tax credit can be claimed in the same month's GSTR-3B after cash payment is deposited.

Worked Example: Corporate Renting & Advocate Fee RCM Calculation

M/s Zenith Corporate Solutions Pvt Ltd incurs the following expenses during Q1 FY 2026-27:

Legal Advocate Fee (Entry 2):₹2,00,000 → Mandatory 18% RCM = ₹36,000 (CGST ₹18,000 + SGST ₹18,000)
Independent Director Sitting Fee (Entry 3):₹1,50,000 → Mandatory 18% RCM = ₹27,000 (CGST ₹13,500 + SGST ₹13,500)
Residential Rent for Guest House (Notif 05/2022):₹1,00,000 → Mandatory 18% RCM = ₹18,000 (CGST ₹9,000 + SGST ₹9,000)
Total Cash Ledger Payment Required in GSTR-3B:₹81,000 (Must be paid in cash via Table 3.1(d))
Eligible ITC Claimed in GSTR-3B:₹81,000 (Claimed in Table 4(A)(2) after cash deposit)

Frequently Asked Questions (FAQs)

Is GST RCM applicable on executive director salary?

No. Executive director salary subjected to TDS under Section 192 is covered under Schedule III Entry 1 (employee to employer) and is completely exempt from GST.

Can I pay RCM liability using available ITC in Electronic Credit Ledger?

No. Section 49(4) of the CGST Act strictly mandates that RCM liabilities must be paid 100% in cash via Electronic Cash Ledger. Using ITC to pay RCM is illegal and attracts 18% interest under Section 50.

What is a Self-Invoice under Section 31(3)(f)?

A Self-Invoice is a mandatory tax document issued by a GST-registered recipient when procuring goods or services attracting RCM from an unregistered supplier.

How does RCM apply to residential and commercial renting?

Under Notification 05/2022, renting a residential dwelling to any GST-registered entity attracts mandatory 18% RCM. Under Notification 09/2024, commercial rent paid by a registered entity to an unregistered landlord also attracts 18% RCM.

Do legal advocates need to register for GST if their income is under RCM?

No. Under Notification 5/2017-CT, advocates providing services 100% covered under Reverse Charge are completely exempt from obtaining GST registration.