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GST Reverse Charge Calculator

Calculate GST liability under Reverse Charge Mechanism (RCM). Get accurate tax calculations for various RCM scenarios including unregistered dealers, GTA services, advocate fees, and more.

RCM Details

Supplies from unregistered persons to registered persons

CGST + SGST will be applicable

RCM Calculation
Base Amount1,00,000
CGST (9%)9,000.00
SGST (9%)9,000.00
Total GST18,000.00
Total Amount1,18,000.00
Net Cash Outflow(After ITC claim)
1,00,000.00

GST Liability under RCM

You need to pay ₹18,000.00 as GST to the government under reverse charge mechanism.

Understanding Reverse Charge Mechanism (RCM)

Reverse Charge Mechanism (RCM) is a system where the liability to pay GST is on the recipient of goods or services instead of the supplier. Under normal circumstances, the supplier charges GST from the customer and pays it to the government. However, under RCM, the buyer pays the GST directly to the government.

Key Points:

  • • Recipient is liable to pay GST instead of supplier
  • • Applies to specific goods and services notified by government
  • • Both CGST and SGST (or IGST) need to be paid
  • • ITC can be claimed if eligible
Frequently Asked Questions

Disclaimer

This calculator provides estimates for educational purposes only. Actual GST liability under RCM may vary based on specific circumstances, notifications, and circulars. Please consult a GST practitioner or Chartered Accountant for accurate compliance. FincalFY is not liable for any decisions made based on these calculations.

Last Updated: December 2024 | Based on: GST Act, 2017 and latest notifications