What is Reverse Charge Mechanism (RCM) under GST?

Reverse Charge Mechanism (RCM) is a GST provision where the recipient of goods or services pays the GST directly to the Government, instead of the supplier collecting and depositing it. RCM applies to specific notified categories such as Goods Transport Agency services, Legal services by Advocates, Services by Director to Company, Sponsorship services, supplies from Unregistered persons in specified cases, and specified goods like Cashew nuts, Tobacco leaves, Raw cotton, and Metal scrap.

Which services are covered under RCM in GST?

Under Notification 13/2017-CTR (as amended), 21 categories of services are covered under RCM, including: GTA services (where GTA has not opted for Forward Charge), Legal services by Advocates, Services by Director to Company, Sponsorship services, Insurance Agent services, Renting of Residential Property to registered person, Renting of Commercial Property by Unregistered to Registered, Security services by non-corporate, Recovery Agent services, Copyright services by Author/Music creators, and Services by Government to Business Entities.

Is ITC available for GST paid under RCM?

Yes, Input Tax Credit (ITC) is generally available for GST paid under RCM, provided it is paid in cash via PMT-06 / GSTR-3B and the recipient meets all ITC eligibility conditions under Section 16 of the CGST Act. However, certain RCM payments do not allow ITC, such as: Renting of passenger transport vehicles where seating capacity is less than or equal to 13 (unless used for outward supply of similar service), as expressly stated in Notification 13/2017-CTR.

What is the latest amendment in RCM regarding Metal Scrap?

Effective 10-October-2024, supply of Metal Scrap (HSN Chapters 72 to 81) by an unregistered person to a registered person is liable to GST under RCM at 18%. Importantly, the general rule that suppliers with 100 percent RCM turnover need not register has been withdrawn for Metal Scrap suppliers (Notification 24/2024-CT dated 10-10-2024). Upon registration, such transactions move to Forward Charge.

Is RCM applicable on rent paid by a Proprietor for personal residential use?

No. While renting of residential property to a registered person is generally liable to GST under RCM at 18% (effective 18-July-2022), an exemption applies if a residential property is taken on rent by a Proprietor for his personal residential use (Entry 12 of Notification 12/2017-CTR). The exemption requires that the rental dwelling is used purely for personal residence, not for business purposes.

FY 2026-27 · Updated to NN 24/2024-CT

GST RCM Master Reference

Reverse Charge Mechanism — Search 36 entries across Services, Goods & Promoter-Builder. Filter by HSN/SAC, GST rate, supplier or recipient type. Each entry includes effective dates, source notifications & practical compliance notes.

By B.A. Bedawala & Co., Chartered Accountants, Ahmedabad

21Services

11Goods

4Promoter-Builder

36Total Entries

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Showing all 36 RCM entries

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⚠️ Disclaimer: RCM entries are sourced from public CBIC notifications (NN 13/2017-CTR, NN 04/2017-CTR, NN 07/2019-CTR, NN 09/2024-CTR, NN 24/2024-CT, and amendments). The Government may issue further notifications, circulars, or amendments affecting specific entries. Always verify the current position from CBIC (cbic.gov.in) before relying on any specific entry for compliance, payment, or litigation. This tool is provided as a professional reference; for complex RCM disputes, ITC eligibility issues, or notice replies, consult a qualified Chartered Accountant.

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